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Series B Announcement

Written by
Codeium Team
Annoucing our Series B

Today, we are excited to announce our $65m Series B round at a $500m valuation, led by Kleiner Perkins and with participation from repeat investor Greenoaks as well as General Catalyst.

At Codeium, we are building the next generation of AI tools for software developers.

Today, over 300,000 developers use Codeium because it provides intelligent code suggestions in the context of your codebase. Leading enterprises such as Anduril, Clearwater Analytics, and a number of other Fortune 500 companies use Codeium to accelerate their developers’ productivity.

We leverage proprietary AI models to maximize developer productivity using state-of-the-art integration with your codebase. Codeium supports over 70 languages and works in over 40 Integrated Developer Environments (IDEs), including Visual Studio Code, the JetBrains suite, Visual Studio, Eclipse, and Jupyter Notebooks.

The AI that Enterprises Need

In our discussions with leaders at companies ranging from startups to Fortune 500s, we’ve identified a common desire: can generative AI increase the productivity of an entire team of software developers? Software engineering is expensive, and developers’ time is best spent coding instead of scouring documentation for relevant information or writing repetitive boilerplate code. With the current overhead of software engineering, today many developers spend less than an hour a day actually writing code in their editors.

So a bit over a year ago, we started asking ourselves how AI could have the most impact and best help developers spend their time doing valuable work. After months of research and discussions with our enterprise partners, we developed a few principles that seem simple in hindsight. The best AI platform for software engineers must satisfy three principles:

  • First, AI must accelerate every task developers may do, independent of their domain, programming languages, or existing toolset.
  • Second, AI must satisfy your company’s security and legal requirements, while still being highly performant and cost-effective.
  • Third and most importantly, AI must learn from your company’s knowledge and be personalized to individual developers and companies.

We felt that there was no other offering out there that satisfied these three principles. Instead of integrating with every IDE, others only integrated with one or two. Instead of focusing on a complete AI developer solution, others only focused on one modality at a time. Instead of integrating with your code no matter where it’s stored, others force you to use a specific source code management (SCM) platform too. And a lot of these solutions force companies to compromise between security and performance, forcing you to send code over the internet to access the best AI models.

How We Do It

Our secret sauce? Our team has been developing infrastructure for large-scale AI workloads for years, and this multi-year head start has allowed us to stay ahead of the curve with our vertically-integrated solution.

With this differentiated background, we’ve been able to scale from zero to over 300,000 users in less than fifteen months, while simultaneously increasing the size and quality of the proprietary Large Language Models (LLMs) that power our product, building intuitive and industry-leading user experiences, and personalizing suggestions to each developers' tasks. Developers love our tools so much that we have a 5-star rating on every extension marketplace we’re offered on.

Since we develop our own LLMs and own everything from the hardware to the application layer, we have been able to deploy these models at a fraction of the cost of our competitors. Our background has allowed us to ship generative AI tools to every developer completely for free, with more language, IDE, and SCM support than anyone else.

And at the same time, we’ve deployed our enterprise AI solution to thousands of developers across hundreds of companies in every vertical, such as Anduril, Clearwater Analytics, and a number of Fortune 500 companies. Our solution meets each company’s legal and security requirements: whether you need an air-gapped self-hosted instance or SOC 2 Type 2 compliant SaaS, Codeium is there to provide the most secure solution on the market for your company.

Because of our dedication to efficient infrastructure, we can provide the best possible experience for our enterprise self-hosted customers. Using cutting-edge techniques we’re able to efficiently serve our models on your own hardware so you don’t have to worry about your intellectual property leaving your network. Our metrics show that Codeium is writing upwards of 40% of new committed code, and companies’ own reports show that developers close tickets twice as quickly.

What’s Next

Today, we believe Codeium makes developers 20% more productive. While impressive, we believe there is so much more that can be done. We envision Codeium as not just a coding assistant, but a productivity multiplier that will make developers 20x more productive rather than just 20%.

In the short term, we’re integrating our AI with more of the tools you already use, from your SCM platform to your documentation to your tickets. We’re also scaling up our AI to the level of your codebase: our AI will soon be designing and planning software systems, migrating your legacy code, and fixing security vulnerabilities across your whole codebase.

We are uniquely positioned as a fully vertical solution that agnostically integrates with all other tools, and we have no desire to build a walled garden. We already have a track record in leading the industry in new features and capabilities, such as being the first (by many months) to release a context-aware in-IDE AI Chat. It all goes back to our three principles: we provide AI for your development, your security, and your knowledge.

We will continue to be the first to drive forward the ever-advancing edge of possibility by connecting developers with the state-of-the-art in AI technology. With our strong foundation as the industry’s leading provider of context-aware autocomplete and chat and our ability to rapidly develop and productionize cutting-edge new AI products, we are excited to embark on this next chapter of integrating AI into every part of the software development lifecycle.

Our Series B is a vote of confidence from leaders in this space that our team is uniquely positioned to deliver on this vision of accelerated productivity for all software developers. We plan to use the capital to grow our sales and engineering teams to best support our customers, all while building the future of software development.

If you are interested in learning more about our mission and our products, please reach out.

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