Blacksmith Software Inc. has closed a $45 million Series B led by Peak XV Partners, valuing the San Francisco continuous-integration startup at $550 million — roughly ten times where it sat a year ago — and giving the company fresh capital to expand the compute infrastructure that validates code written by AI agents.
Validation, Not Generation, Becomes The Bottleneck
Blacksmith's platform runs continuous-integration workloads on purpose-built bare-metal hardware rather than shared cloud virtual machines, and the company says weekly jobs on the platform have grown 5% to 10% per week since January. Its customer base has climbed from about 800 companies when it announced its Series A last September to more than 6,000 today, including Supabase, Clerk, Ashby and Mercury Systems.
Chief executive Aditya "JP" Jayaprakash pitched the round as a bet on where AI-native software gets stuck. "Writing code has gotten dramatically easier. Validating it hasn't," he said. "Every piece of code an agent writes still has to be built, tested and reviewed before it can ship."
Codesmith Puts An Agent Inside The CI Loop
The company recently launched Codesmith, a cloud coding agent that developers can hand tasks to. Codesmith operates inside the validation loop — diagnosing integration failures, patching broken submissions and healing pull requests before the team is pinged. Blacksmith says the new capital will fund an order-of-magnitude increase in compute capacity to keep pace with the shift toward agentic tools such as Claude Code and OpenAI's Codex.
A Peak XV Bet On The Second Half Of AI Coding
Existing investors Y Combinator and GV, formerly Google Ventures, also joined the round, which Jayaprakash said they had been "tripling down" on. Blacksmith's total funding now stands at $58.5 million. The Series B was actually closed in March and disclosed only this week, joining a wave of infrastructure deals around the AI capex boom and rising scrutiny of AI-generated output.
Reporting based on coverage from SiliconANGLE, TechCrunch and PR Newswire.