SAN FRANCISCO — CodeRabbit, a two-year-old startup focused on AI code review, has closed a $143 million Series C round that values the company at $1.5 billion.
Atomico and Smash Capital co-led the financing. BMW i Ventures, Datadog, Hirtle Callaghan and SineWave Ventures also participated. Existing investors CRV, Scale Venture Partners, Flex Capital and Pelion Venture Partners increased their stakes. Senior executives from Apple and Amazon joined as angel investors.
Alongside the raise, CodeRabbit introduced Agentic Change Management, a control layer designed to help development teams manage rising volumes of AI-generated code. The product extends the company's existing AI code review tool, which provides real-time checks for developers.
The round nearly triples CodeRabbit's valuation from September 2025, when a $60 million Series B led by Scale Venture Partners valued the company at $550 million. Total funding now stands at $231 million.
The business model targets enterprise clients facing a concrete operational problem: as AI coding tools push more code into development pipelines, reviewing and integrating that output has become a bottleneck. Automating parts of that review process cuts developer time and cost, though developers have noted that full automation without human oversight carries real risk.
Datadog's participation is worth watching. The observability platform has a direct commercial interest in connecting code quality tooling to its broader monitoring stack — a combined offering that would deepen customer lock-in on both sides. CodeRabbit said proceeds will fund product development and market expansion.
