Blacksmith Series B raises $45 mn led by Peak XV at $550 mn valuation. By Tanu August 17, 2026 4 Mins Read Blacksmith Series B has raised $45 million in fresh funding led by Peak XV Partners, valuing the San Francisco-based AI developer infrastructure startup at around $550 million. Existing backers Google Ventures (GV) and Y Combinator also participated in the round. The financing was completed in March 2026 but has been disclosed only now. With the latest investment, Blacksmith's total funding has reached approximately $58.5 million. The company plans to use a substantial share of the new capital to expand its computing capacity as demand rises for infrastructure that can test, validate and ship software generated with the help of artificial intelligence. Blacksmith targets rising AI code testing demand. Blacksmith operates in the continuous integration (CI) segment, helping engineering teams automatically build and test software before it moves further through the development process. The company was founded in 2024 by Aditya Jayaprakash, Aditya Maru and Aayush Shah. Its business has increasingly shifted toward supporting development workflows in which AI systems themselves generate and modify code. As AI coding tools become more capable, developers can produce software changes at a much faster pace. That increases the amount of code that needs to be tested and reviewed before deployment, creating additional pressure on existing CI infrastructure. Blacksmith said the number of CI jobs processed through its platform has been increasing by roughly 5% to 10% week-on-week since the beginning of 2026. The startup now serves more than 6,000 companies, with customers including Supabase, Clerk, Ashby and Mercury. Fresh capital to expand computing infrastructure. A major priority for the Blacksmith Series B proceeds will be increasing the company's computing footprint. Blacksmith currently manages hundreds of thousands of CPU cores and intends to expand that capacity by roughly 10 times in the coming months. The investment comes as the company prepares for a much larger volume of software testing workloads generated by AI-assisted development. Blacksmith argues that conventional CI infrastructure could face capacity and performance constraints as AI coding agents generate more pull requests and software changes. The company is therefore building infrastructure specifically designed around the speed and scale required by modern software development teams. Startup expands beyond traditional CI workflows. Blacksmith has also broadened its product offering beyond automated testing. Its recently introduced Code Smith is a cloud-based coding agent designed to work on software development tasks, including building features, fixing bugs and investigating CI failures. The company is also developing CodeSmith Quality Assurance, which is intended to automatically test code changes before they are merged. The broader strategy is to make the development cycle more automated, allowing both human developers and AI agents to move from writing code to validation and deployment more quickly. Blacksmith has positioned its infrastructure against established developer platforms such as GitHub Actions, CircleCI, Buildkite, Depot and Namespace. The startup claims its purpose-built CI cloud can execute workloads up to twice as quickly and reduce costs by 50% to 75% compared with GitHub-hosted runners. Blacksmith's own engineering updates also highlight the growing pressure AI-generated code is placing on continuous integration systems. Blacksmith's engineering blog Peak XV deepens US AI investment push. The Blacksmith Series B investment also highlights Peak XV Partners' expanding focus on US-based technology startups. The venture capital firm has been building its presence in the US since becoming an independent firm following the 2023 separation from Sequoia Capital. Its US portfolio includes AI and developer-focused companies such as Vapi, Mem0, Hyperbound and PostHog. Peak XV's official portfolio also lists Blacksmith among its investments, reflecting the firm's broader interest in developer infrastructure and AI-focused businesses. In February 2026, Peak XV announced $1.3 billion in new capital commitments across its India Seed, India Venture and APAC funds, underlining its continued investment activity across technology markets. The Blacksmith investment comes as AI increasingly changes the economics and workflow of software development. For the startup, the next phase will centre on scaling its infrastructure while expanding tools that allow AI-generated code to be tested and merged with less manual intervention. For more business and startup funding updates, readers can also explore [Lenskart Q1 FY27 results](https://businessmatters.in/lenskart-q1-fy27-results/) and [IndiQube Q1 FY27 results](https://businessmatters.in/indiqube-q1-fy27-results/).

Blacksmith raises $45M Series B from Peak XV Partners as ai-generated code drives demand for faster code validation. Aug 12, 2026, 07:07 ET Peak XV Partners leads the round as Blacksmith grows from 800 to more than 6,000 customers amid surging demand for faster code validation. SAN FRANCISCO, Aug. 12, 2026 /PRNewswire/ - Blacksmith, a cloud for validating code, has raised a $45 million Series B led by Peak XV Partners, with existing investors Y Combinator and GV also participating. The round values the company at $550 million. The financing comes as AI coding tools are changing how quickly engineering teams produce software. Since the beginning of the year, the number of CI jobs running on Blacksmith has grown between 5% and 10% week over week. More than 6,000 companies now use Blacksmith, including Supabase, Clerk, Ashby and Mercury, up from approximately 800 when the company announced its Series A last September. As developers adopt tools such as Claude Code, Codex and other coding agents, teams are producing significantly more code and opening more pull requests. That has put increasing pressure on the infrastructure responsible for building, testing and validating every change before it ships. "Writing code has gotten dramatically easier. Validating it hasn't," said Aditya "JP" Jayaprakash, co-founder and CEO of Blacksmith. "We're seeing teams adopt coding agents, generate several times more pull requests, and suddenly CI becomes a bottleneck. Every piece of code an agent writes still has to be built, tested, and reviewed before it can ship. That validation layer is going to become increasingly important as more software is written by agents." Beyond CI: the validation platform Blacksmith started with purpose-built infrastructure that runs CI workloads dramatically faster than general-purpose cloud instances, with migration taking a one-line change to a workflow file. That remains the foundation. The broader goal is helping developers validate and merge code faster, with confidence in every change they ship. The company recently launched codesmith, a cloud coding agent developers can delegate tasks to. Beyond building features and fixing bugs, codesmith works inside the validation loop: diagnosing CI failures, autofixing them, and keeping pull requests green. It is also the foundation for codesmith QA, which will autonomously test changes before they merge. Where the money goes Most of the new capital goes to compute. Blacksmith manages hundreds of thousands of cores today and plans to grow that footprint by an order of magnitude in the coming months to stay ahead of demand. About Blacksmith Blacksmith builds infrastructure and software for validating code. Its purpose-built CI cloud runs GitHub Actions workloads on dedicated compute with caching and storage optimized for CI. More than 6,000 companies use Blacksmith, including Supabase, Clerk, Ashby and Mercury. Blacksmith also develops codesmith, its cloud coding agent for building and validating software. The company was founded by Aditya (JP) Jayaprakash, Aayush Shah and Aditya Maru and is backed by Peak XV Partners, Y Combinator and GV. For more information, visit blacksmith.sh. About Peak XV Partners Peak XV Partners (formerly Sequoia Capital India & SEA) is a leading venture capital firm investing across India, APAC and beyond. Over the last 20 years of operations in the region, Peak XV has grown to manage over USD 10 billion in capital across 16 funds and has invested in over 450 companies. The portfolio has seen over 37 IPOs and several successful M&As to date. To know more, please visit www.peakxv.com. SOURCE Blacksmith