CodeRabbit raises $143 million at $1.5 billion valuation to manage AI-generated code explosion

AI code review platform CodeRabbit valued at $1.5 billion in latest funding round

Aug 12 (Reuters) - AI code review startup CodeRabbit said on Wednesday it had raised $143 million in a funding round ⁠that valued it at $1.5 billion. The round was co-led by Atomico and Smash Capital, with participation from new investors including ⁠BMW I Ventures, Datadog, Hirtle Callaghan, among others. The latest ⁠funding comes less than a year after ⁠CodeRabbit's $60 million Series B funding ⁠round. Reporting by Prakhar Srivastava in Bengaluru; Editing by Maju Samuel Our Standards: The Thomson Reuters Trust Principles., opens new tab

CodeRabbit Series C: $143m to review AI-written code

The CodeRabbit Series C is $143m at a $1.5bn valuation, and Europe's Atomico co-led it. The startup reads code that AI wrote. Its pitch is that writing software has stopped being the hard part. Code review is the step where somebody reads a change before it ships. A developer proposes an edit, opens what the trade calls a pull request, and a colleague checks it for bugs and security holes. It is slow and unglamorous work. Until recently it was also manageable, because roughly one human wrote each change and roughly one human read it. That ratio has broken. Coding agents now work for hours at a stretch and open pull requests with barely any human involvement. On Wednesday CodeRabbit said it had raised $143m to sit in the gap. Bloomberg reported the round before the announcement. Atomico and Smash Capital co-led it. Chief executive Harjot Gill gave the post-money figure to Axios Pro as $1.5bn. He and Gur Singh founded the company in San Francisco in 2023. Gill had sold an earlier startup, Netsil, to Nutanix in 2018. Nobody is reading what the agents write The company sources the problem from outside itself. GitHub is on pace to record 14 times more commits this year, on its chief operating officer's own figures. Among firms in the top decile of coding-agent adoption, agents open 35% of pull requests, according to Jellyfish. Demand for the agents keeps outrunning supply. GitHub Copilot paused new signups rather than let usage run away from it. "AI made code plentiful," CodeRabbit wrote on X. "Trust is now the bottleneck." The product reviews changes automatically. It flags bugs, security flaws and maintainability risks, and it explains what each change does. It runs more than two million reviews a week for over 17,000 customers, the company said in its funding release. Nvidia, BMW, Adyen, Indeed, JFrog and Trivago are among them. A European fund co-led an American round Atomico is a London firm, and it does not often co-lead US growth rounds of this size. Partner Luca Eisenstecken takes a board seat. "As AI becomes critical infrastructure for the global economy, organisations will increasingly need independent governance layers that can validate software regardless of which model produced it," Eisenstecken said. The money follows the customers. CodeRabbit has opened an office in Moorgate in London and now employs 50 people across the UK and the EU. It plans to double that European headcount, then move into Japan and Singapore. BMW i Ventures also joined the round. Managing partner Kasper Sage said carmakers depend on reliable software and efficient engineering teams. BMW is already a CodeRabbit customer, so the fund is backing a product its own engineers use. Several backers sit on both sides of the ledger. Datadog is a new investor. Nvidia was already one, and it is a customer as well. That Nvidia tie is technical, not only financial. CodeRabbit post-trained Nvidia's Nemotron 3.5 Lightning model to handle one of its highest-volume routing jobs. Existing backers CRV, Scale Venture Partners, Flex Capital and Pelion Venture Partners all returned. The bigger claim is that Jira is finished CodeRabbit announced a product category alongside the money, and called it Agentic Change Management. The founders' blog post puts it more bluntly. "Issue tracking is dead." The argument runs like this. Trackers such as Jira were built when writing code was expensive, so teams planned first and built second. AI reverses that order. Code now exists before anyone has decided whether it is worth having. Anyone can start a change, too. OpenAI has pushed Codex at non-developers for much the same reason. Three new tools follow from that. Triage scores incoming pull requests by value, urgency and risk, then routes the low-risk ones into automation. Change Stack groups a large agent-written diff into layers a human can follow. CodeRabbit Security scans code that has already shipped. Security is what the cheque was really for Large language models cut the cost of finding vulnerabilities. That helps defenders and attackers equally. It is why the security product arrived with the round rather than after it. "Security now requires a continuous system that can reason across the repository, verify whether a threat is real, and move the fix back through the development workflow," said Brad Twohig, founding partner at Smash Capital. The desk has covered the failure mode before. Lovable's vibe-coding platform ran into a security crisis of its own. The supply chain shows the same shape. An npm worm spread through developer packages this year. The market is smaller than the company Here is the awkward number. The global code review services market is worth about $3.04bn this year and should reach $4.79bn by 2032, on 360iResearch figures cited by Tech Funding News. CodeRabbit is valued at $1.5bn. That is roughly half the entire market it currently sells into. The valuation only works if code review stops being a developer tool and becomes infrastructure. Gill says the pull is there. "It's almost like a land grab moment for us," he told Bloomberg. Rivals are grabbing too. Qodo raised a $70m Series B led by Qumra Capital, Greptile raised a Series A at a $180m valuation, and CodeAnt AI closed a $2m seed. Cost is the other pressure. Gartner expects AI coding to cost more than developers by 2028, and a review layer adds to that bill rather than trimming it. What the company did not disclose Revenue grew more than five times year over year, CodeRabbit said. It did not say what it grew from. The multiple therefore carries no absolute figure. Total funding is about $231m by Tech Funding News arithmetic, counting a $16m Series A in 2024 and a $60m Series B last September. Bloomberg puts the total at more than $200m. The company will also spend $10m over 12 months keeping the tool free for open-source maintainers, Reuters reported. That covers 150,000 projects. What would settle it Two things are checkable rather than rhetorical. The first is the London headcount, which the company says will double from 50. The second is the real claim. "Issue tracking is dead" is a big sentence, and it stops being marketing on the day a named customer says it dropped Jira for CodeRabbit Triage. Until then this is a very well funded company selling a fix for a problem the AI industry created, to the same industry that created it.

Nvidia-backed CodeRabbit valued at $1.5bn after $143m funding round

CodeRabbit intends to put part of the funds towards expanding its European workforce and moving into the Asian market. AI code review start-up CodeRabbit, which is backed by Nvidia, has announced a Series C funding round in which the organisation raised $143m, bringing the company to a valuation of $1.5bn. The round was co-led by Atomico and Smash Capital, with participation from new investors including BMW i Ventures, Datadog and Hirtle Callaghan. Established in 2023, CodeRabbit is headquartered in California and has an additional office in London. The company offers an AI-powered coding tool that enables users to automatically review code as it is being written. The organisation intends to use the new capital to accelerate its international expansion, as well as advance its research and product development. Reportedly, CodeRabbit plans to expand the Europe-based workforce and extend into Asia, with a particular focus on Japan and Singapore. Commenting on the announcement, Luca Eisenstecken, a partner at Atomico, who will soon join CodeRabbit's board of directors, said, "As AI becomes critical infrastructure for the global economy, organisations will increasingly need independent governance layers that can validate software regardless of which model produced it. "That kind of trusted, model-agnostic infrastructure strengthens the resilience of the software that businesses depend on. CodeRabbit's independent review system and deep contextual understanding position it as the control layer for agentic software development." Harjot Gill, CodeRabbit's CEO and co-founder added, "Code changes now originate across the software organization, including from developers, non-technical personnel, as well as from coding agents to issue trackers, support systems, and production alerts. "Every change creates a decision for the team. We pioneered AI code review to give teams an independent system that validates the work before it ships. Agentic change management expands that layer to determine what deserves attention, explain each change's impact, and continue monitoring the codebase after it ships." There has been a recent surge of interest in tools and programmes designed to enable coders and other tech employees to churn out code quickly and efficiently. In March, Replit, a 'vibe-coding' start-up, announced a funding milestone after raising $400m in a Series D round to stand at a $9bn valuation. Following Anthropic's launch of Code Review, an AI-powered feature designed to catch and eliminate bugs before they make it into a software's codebase, SiliconRepublic.com spoke with Globant's senior vice-president of digital innovation, Agustin Huerta about the pros and cons of creating an environment in which coding is far simpler. Don't miss out on the knowledge you need to succeed. Sign up for the Daily Brief, Silicon Republic's digest of need-to-know sci-tech news.

CodeRabbit bags $143M to help companies get a grip on the explosion of AI-generated code

CodeRabbit Inc., the creator of a popular tool that automatically reviews artificial intelligence-generated code, is becoming more ambitious after closing on its latest $143 million Series C round of funding. Alongside the round, it announced the launch of a new Agentic Change Management layer that's meant to help companies govern, evaluate and prioritize code changes made by both humans and AI agents. Today's round was led by Atomico and Smash Capital and saw the participation of a host of new backers, including BMW i Ventures, Datadog Inc., Hirtle Callaghan and SineWave Ventures. Existing investors such as CRV, Scale Venture Partners, Flex Capital and Pelion Venture Partners also piled into the round, as did a number of angel investors, including senior executives from Apple Inc. and Amazon.com Inc. Until now, CodeRabbit has only offered a fairly straightforward, yet very effective, AI-enabled code review tool that lets developers check the code generated by the AI tools they're using in real time. Its automated platform uses AI agents to catch syntax errors, logic bugs and security vulnerabilities in freshly generated code the moment it's created, helping developers to ensure their code meets the highest standards while maintaining the productivity gains associated with "vibe coding." That's all well and good, but CodeRabbit says AI-generated code has now become so pervasive across organizations that it's no longer enough to just review the quality of new code. Before vibe coding emerged to change everything, software engineering was a fairly slow process. Because of this, most teams managed their backlogs using tools such as Jira, assigning work to individual developers manually. But nowadays, AI-native development means that everyone, including product managers, designers, marketers, background agents and even things like support systems and observability platforms, can automatically generate code or create pull requests. Increasingly, code is being pushed out before organizations can even hope to establish alignment, assign priorities and determine if the code should be put into production. Companies are simply overwhelmed by a tsunami of AI-generated code, explained CodeRabbit co-founder and Chief Executive Harjot Gill. "Code changes now originate from across the software organization, including from developers, nontechnical personnel and coding agents," he said. "Every change creates a decision for the team." A simple code quality review is no longer enough for teams to keep up. That's why CodeRabbit has unveiled Agentic Change Management, an expanded control layer that's meant to help software engineering teams govern, understand and safely ship software at much greater scale than they've been able to do before. According to Gill, the platform works by validating incoming pull requests using repository-wide context and sandboxed test environments to assess their impact, while its traditional AI agents continue to iron out any flaws in that code. Gill explained that Agentic Change Management has three core capabilities, all available starting today. The first is CodeRabbit Triage, which expands the standard code review process into prioritization and routing. Essentially, what it does is score each incoming pull request based on its value, dependencies, urgency, risk and reviewer fit. In this way, it can direct high-stakes requests to human developers for review, while automatically processing low-risk tasks. There's also CodeRabbit Change Stack, which improves explainability by replacing traditional alphabetic file views with a visual look at a pull request's impact on domain behavior, system dependencies and integration impact. With this, developers can highlight the architectural risks of each proposed change before it's actually merged. Finally, CodeRabbit Security is designed to handle governance by performing full-repository scans and continuously monitoring new code after it's shipped. It works by identifying logic vulnerabilities in production code, and from there it can generate recommended fixes and send them back through the pull request loop to ensure that additional problems won't surface if they're implemented. By combining these capabilities into a single platform, CodeRabbit says, it's making it much easier for software engineering teams to manage high-volume AI code changes from multiple sources without sacrificing control. "We pioneered AI code review to give teams an independent system that validates work before it ships," Gill explained. "Agentic Change Management expands that layer to determine what deserves attention, explain each change's impact and continue monitoring the codebase after it ships."

AI code review platform CodeRabbit valued at $1.5 billion in latest funding round

Investors were betting that the rapid ⁠adoption of ⁠AI coding tools and vibe coding would increase demand for software monitoring and code fixes as firms grappled with a surge in AI-generated code. AI code review startup CodeRabbit said on Wednesday it had raised $143 million in a funding round that valued it at $1.5 billion. The round was co-led by Atomico and Smash Capital, with participation from new investors including BMW i Ventures, Datadog and Hirtle Callaghan. Investors were betting that the rapid ⁠adoption of ⁠AI coding tools and vibe coding would increase demand for software monitoring and code fixes as firms grappled with a surge in AI-generated code. CodeRabbit helps developers improve code quality and work more efficiently. It also explains the impact of each change and monitors production code for vulnerabilities and maintainability risks. The latest ⁠funding comes less than a year after CodeRabbit's $60 million Series B round. Luca Eisenstecken, partner at venture capital firm Atomico, ⁠will join the company's board. "As AI becomes critical infrastructure for the global economy, organisations will increasingly need independent governance layers that can validate software regardless of which model produced it," said Eisenstecken. San Francisco-headquartered CodeRabbit has recently opened an office in London and plans to expand further in Europe, as well as enter Japan and other Asian markets. The funding also comes as increasingly capable AI models enable more sophisticated cyberattacks, prompting companies to strengthen their security, examine more code ⁠for vulnerabilities and take steps to prevent attacks. CodeRabbit said it conducts more than 2 million code reviews a week and has more than 17,000 customers including Nvidia, BMW, JFrog, Trivago, Adyen and Indeed. CodeRabbit also plans to invest more than $10 million over the next 12 months to keep its AI code review and agent capabilities free for open-source projects and maintainers.

CodeRabbit raises $143M at $1.5B valuation for AI code review By Investing.com

SAN FRANCISCO - CodeRabbit announced Wednesday it has raised $143 million in Series C funding at a $1.5 billion valuation, according to a press release statement. The round was co-led by Atomico and Smash Capital, with participation from new investors including BMW i Ventures, Datadog, Hirtle Callaghan, SineWave Ventures, and Scenic Management. Existing investors CRV, Scale Venture Partners, Flex Capital, Pelion Venture Partners, Harmony Partners, and Engineering Capital also participated. Luca Eisenstecken, Partner at Atomico, will join the company's Board of Directors. The funding comes less than a year after the company's $60 million Series B round. CodeRabbit reported revenue growth of more than 5x year-over-year. The company conducts more than 2 million code reviews weekly and serves more than 17,000 customers, including Adyen, BMW, Indeed, JFrog, NVIDIA, Trivago, and Campfire. CodeRabbit plans to use the capital to accelerate international expansion and research and product development. The company recently opened a London office in Moorgate and has scaled to 50 full-time employees across London and the EU. The company also plans to enter the Japanese market and other Asian markets. The company announced it will invest more than $10 million over the next 12 months to keep AI code review and agent capabilities free for open source projects and maintainers. CodeRabbit introduced what it calls Agentic Change Management, which the company describes as a control layer for governing software created by people and agents. The platform includes three new capabilities: CodeRabbit Triage for prioritizing pull requests, CodeRabbit Change Stack for explaining code changes, and CodeRabbit Security for identifying vulnerabilities in production code. "Every change creates a decision for the team," said Harjot Gill, co-founder and CEO of CodeRabbit. "We pioneered AI code review to give teams an independent system that validates the work before it ships." The new capabilities are available immediately to existing customers. New customers can sign up for a 14-day trial at coderabbit.ai. This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.