Blacksmith raises $45M to scale AI code validation services

AI code-testing startup Blacksmith has raised $45 million in a Series B funding round led by Peak XV Partners. The investment brings the company’s valuation to $550 million, a significant increase from its $60 million valuation less than a year ago.

Existing investors GV and Y Combinator also participated in the round. The company plans to use the capital to expand its compute infrastructure to meet growing demand. Blacksmith provides continuous integration services that allow teams to build, test, and verify software in the cloud.

As developers increasingly use agentic AI tools like Claude Code and OpenAI’s Codex to generate code, Blacksmith aims to address the resulting bottleneck in code validation. The startup recently launched Codesmith, an AI coding agent designed to diagnose and automatically fix integration failures within the validation loop. Blacksmith currently serves over 5,000 customers.