Codeium Secures $65 Million in Series B Funding to Expand AI Coding Toolkit

San Francisco-based Codeium secures $65 million in Series B funding at a $500 million valuation. The round is led by Kleiner Perkins, with participation from repeat investor Greenoaks and General Catalyst.

Codeium Secures $65 Million in Series B Funding to Expand AI Coding Toolkit
Image / Codeium

Codeium, a pioneer in developing the next generation of AI tools for software developers, announces the successful closure of a $65 million Series B funding round. The investment is led by Kleiner Perkins and includes participation from existing investor Greenoaks, along with General Catalyst. Codeium's latest funding round places the company at a valuation of $500 million.

Codeium attributes its success to a vertically integrated solution and a team with a background in developing large-scale AI workloads. This multi-year head start has allowed Codeium to scale rapidly, reaching over 300,000 users in less than fifteen months. The startup has received positive feedback from developers, evident in its 5-star rating across various extension marketplaces.

By developing proprietary Large Language Models (LLMs) and controlling every aspect from hardware to application layers, Codeium claims to deploy AI models at a fraction of the cost compared to competitors. The platform offers generative AI tools to developers for free, supporting a wide range of languages, IDEs, and Source Code Management (SCM) platforms.

Codeium distinguishes itself through three core principles:

  1. Supporting every developer task across languages, domains, and existing tools.
  2. Meeting companies' security and compliance requirements.
  3. Learning from and personalizing recommendations based on companies' own code and data.

While some competitive solutions focus on specific languages or editors, compromise security with centralized processing, or provide generic suggestions, Codeium stands out by operating across more than 70 languages and 40 integrated development environments. Its flexible deployment models include air-gapped on-premises options.

In the short term, Codeium aims to integrate its AI with additional tools commonly used by developers, such as SCM platforms, documentation systems, and ticketing systems. The company also plans to scale its AI capabilities to handle entire codebases, enabling tasks like designing and planning software systems, codebase migration, and security vulnerability fixes.

Codeium envisions itself not just as a coding assistant but as a productivity multiplier, aiming to make developers 20 times more productive. The startup emphasizes its commitment to remaining a fully vertical solution that integrates seamlessly with existing tools, prioritizing security, performance, and personalized AI learning.

The Series B funding round serves as a vote of confidence from industry leaders, affirming Codeium's unique position to deliver accelerated productivity for software developers. The capital infusion will support the growth of sales and engineering teams, further enhancing Codeium's capabilities in shaping the future of software development.