Codeium Raises $65 Million Series B for AI Coding Toolkit

Codeium Raises $65 Million Series B for AI Coding Toolkit

Codeium, a startup developing AI-powered tools to boost software developer productivity, has raised $65 million in Series B funding. The round was led by Kleiner Perkins, with participation from previous backer Greenoaks Capital as well as General Catalyst.

Codeium emerged from stealth last March and has quickly grown to serve over 300,000 developers globally. The company's tools integrate directly into development environments to provide intelligent code suggestions tailored to developers' specific codebases.

The company was founded around three key principles for enterprise AI tools:

  1. Support every developer task across languages, domains and existing tools
  2. Meet companies' security and compliance requirements
  3. Learn from and personalize to companies' own code and data

Many competitive solutions only focus on one language or editor, rely on centralized processing that compromises security, and provide generic suggestions not tuned to companies' needs.

By contrast, Codeium works across over 70 languages and 40 integrated development environments while offering flexible deployment models including air-gapped on-premise options. Its proprietary models also learn from users' code to generate personalized recommendations.

What truly sets Codeium apart is its vertically integrated solution, built on years of developing infrastructure for large-scale AI workloads. This foundation has enabled Codeium to rapidly scale its user base and improve its Large Language Models (LLMs), all while keeping costs significantly lower than its competitors. The company's approach to developing its own LLMs and controlling the entire stack from hardware to application layer ensures that it can offer generative AI tools to every developer for free, with unparalleled language, IDE, and SCM support.

For enterprises, Codeium has rolled out a solution that ticks all the boxes for legal and security requirements, offering options like air-gapped, self-hosted instances, or SOC 2 Type 2 compliant SaaS solutions. This focus on secure, efficient infrastructure allows Codeium to provide an unmatched experience for its customers, demonstrating its effectiveness by contributing to over 40% of new committed code and helping developers to close tickets twice as fast.

Early customers using Codeium include high-growth startups like Anduril Industries and Clearwater Analytics as well as numerous Fortune 500 firms. Codeium is already delivering around 20% average developer productivity gains, with some teams seeing developers close tickets twice as fast.

The $65 million in new funding will help Codeium improve its models' training data and capabilities. The company aims to eventually make developers 20x more productive compared to today. Upcoming product expansions include integrating Codeium deeper into software lifecycle tools and even automating legacy code migration and security patching.

With Codeium already serving 70 languages and being the first to ship in-IDE AI chat last year, the company is well positioned as a leader in bringing context-aware AI advancements to all developers regardless of their tech stack. The Series B vote of confidence will further cement Codeium's vertical integration and its mission of ubiquitous AI acceleration.

Chris McKay is the founder and chief editor of Maginative. His thought leadership in AI literacy and strategic AI adoption has been recognized by top academic institutions, media, and global brands.

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