AI-generated code is being produced at a pace that outstrips testing capabilities: Blacksmith has raised $66 million in funding, hitting a $1 billion valuation.
1 hours ago
Beating AI Insight News: AI code testing firm Blacksmith has closed a $66 million Series C funding round led by Sequoia Capital, valuing the startup at $1 billion. Founded in 2024, Blacksmith was valued at just $550 million when it completed its Series B round in March this year. Blacksmith specializes in testing code after it is generated by AI tools. Platforms like Claude Code and Codex can now produce large volumes of code rapidly, but this code cannot be deployed directly—it requires compilation and error testing. The faster code is generated, the more testing tasks are needed, leaving legacy systems unable to keep pace. Blacksmith provides dedicated servers to run these tests, cutting down long wait times for developers. The number of weekly code compilation and testing tasks Blacksmith handles has surged roughly 18-fold, rising from 5 million in January this year to over 90 million currently. Over the same period, the company’s annual recurring revenue (ARR) has grown 17 times, with more than 10,000 clients including LangChain and Granola. Blacksmith states its services double testing speed on average and reduce costs by 60%. Unlike traditional solutions that rely mainly on rented cloud servers, Blacksmith purchases its own servers and deploys them in data centers. Most of the funding from this round will go toward acquiring additional computing power, and the company plans to expand its computing capacity by at least five times by 2027.
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