SAN FRANCISCO — Blacksmith, a software validation platform, raised $45 million in a Series B round that values the company at $550 million — an 817 percent increase from its $60 million valuation less than a year ago. Peak XV Partners led the round, with existing investors GV and Y Combinator participating.
Total funding now stands at $58.5 million, following a $10 million Series A in 2025.
The business logic is straightforward: generative AI tools like OpenAI's Codex and Anthropic's Claude Code push more code out the door faster, which means more code to test and validate before deployment. Blacksmith sells cloud infrastructure for continuous integration workloads — the builds and automated checks that catch broken code before it ships. Its Codesmith agent uses AI to automatically fix failed checks.
Founded in 2024, Blacksmith now serves more than 5,000 customers, up from roughly 700 less than a year ago. Named clients include Mercury, Supabase, Clerk, Ashby and Expensify.
The company hit a $10 million annualized revenue run rate with 10 employees. CEO Aditya Jayaprakash said Blacksmith has since grown its workforce to roughly 30 people and revenue has climbed into the tens of millions of dollars, though he did not give a specific updated annual recurring revenue figure.
Some of Blacksmith's largest customers spend more than $1 million annually on the platform — a contract profile that favors margin over volume and gives the $550 million valuation something to stand on beyond raw customer count.
The competitive field is crowded. GitHub Actions, Cursor Automations and validation features baked into AI coding models all compete for the same budget line. Amazon Web Services, Microsoft Azure and Google Cloud offer their own AI code-testing services.
Jayaprakash said Blacksmith competes on testing speed and cost — a combination that targets development teams willing to switch infrastructure providers if the performance gap is wide enough.
