Codeium Secures $65 Million Series B Funding to Advance AI-Powered Coding Toolkit

Codeium Secures $65 Million Series B Funding to Advance AI-Powered Coding Toolkit

Mountain View-based Codeium Inc. has successfully raised $65 million in a Series B funding round led by Kleiner Perkins, with participation from General Catalyst and Greenoaks, bringing the company’s valuation to $500 million. The funds will be allocated to expanding the team and enhancing the features of Codeium’s innovative AI-powered coding platform.

Codeium’s platform, driven by proprietary large language models and OpenAI’s GPT-4, takes the form of an extension that seamlessly integrates into Integrated Development Environments (IDEs). This California-based startup aims to revolutionize software engineering by addressing challenges such as imperfect knowledge retrieval, boilerplate tasks, and maintenance overhead.

Varun Mohan, CEO of Codeium, highlighted the significance of large language models (LLMs) in overcoming these challenges, stating, “The fast rise of LLMs is now giving developers the opportunity to overcome these challenges and significantly increase their productivity.”

The platform features an embedded artificial intelligence chatbot, accessible as a sidebar in the user’s IDE. Developers can seek information about their applications, inquire about code interactions, and even input natural language descriptions of tasks to automatically generate code in over 70 programming languages.

Codeium’s autocomplete tool, unique in its market offering, seamlessly connects to the IDE’s interface, suggesting code additions directly within the panel. Unlike rival products, Codeium claims its autocomplete tool does not face limitations when making additions between existing code snippets, allowing for a broader range of programming tasks.

In addition to its existing capabilities, Codeium plans to expand its platform’s AI capabilities with the newly acquired funding. The development includes features to simplify fixing cybersecurity vulnerabilities and bugs, along with introducing an AI tool for modernizing applications’ legacy code components.

Since its launch in late 2022, Codeium has garnered an installed base of more than 300,000 developers, including Fortune 500 companies. The platform is offered in a free edition and two paid versions tailored for enterprises, emphasizing administrative controls.

Varun Mohan expressed the company’s vision, stating, “We envision Codeium as not just a coding assistant, but a productivity multiplier that will make developers 20x more productive rather than just 20%. Today, we believe Codeium makes developers 20% more productive.”

Codeium has successfully collaborated with companies such as Atlassian, Anduril, Clearwater Analytics, and several Fortune 500 giants, enhancing internal developer productivity. The company aims to cover the entire software development lifecycle, addressing tasks from system design to code maintenance and fixing complex issues like security vulnerabilities.

With a commitment to security and compliance, Codeium offers a SOC2 Type 2-compliant SaaS or self-hosted deployment, ensuring customer code is never saved or used for training the public system. The company’s unique approach and focus on user experience have contributed to its rapid growth, scaling from zero to over 300,000 users in less than fifteen months.

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