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On Wed, 19 Mar, 8:03 AM UTC
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Anthropic-backed AI-powered code review platform Graphite raises cash
AI coding assistants are becoming wildly popular, with the vast majority of respondents in GitHub's latest poll saying that they've adopted AI tools in some form. Y Combinator partner Jared Friedman recently claimed that a quarter of YC's W25 startup batch have 95% of their codebases generated by AI. Sensing an opportunity, VCs are rushing to back startups developing AI-powered assistive programming tools. One of these startups, Graphite, on Tuesday announced that it raised $52 million in a Series B round led by Accel with participation from Anthropic's Anthology Fund with Menlo Ventures, Shopify Ventures, Figma Ventures, Andreessen Horowitz and The General Partnership. Tomas Reimers, Greg Foster, and Merrill Lutsky founded Graphite in 2020. Reimers is an ex-Facebook software dev, whereas Foster was an engineer at Airbnb and Google. Lutsky previously founded Posmetrics, a customer feedback solutions firm. Graphite began its life as a mobile development tooling company, but it pivoted to code review shortly after opening up shop. Today, Graphite's platform gives feedback on code, leveraging AI -- specifically Anthropic's and OpenAI's models -- to flag errors and possible oversights. "Graphite started as an internal tool we built to solve our own pain around code review," Lutsky told TechCrunch. "We shared what we built with a few ex-Meta engineers, who quickly shared it more broadly, and soon the demand for Graphite became too loud to ignore." Graphite also suggests code changes from developer comments on codebases, summarizes code, and generates possible fixes for code failures. For the startup's next act, Graphite is spinning out Diamond, an AI tool designed to catch coding bugs and errors automatically, as a standalone product. There's a lot of competition in the AI coding assistant space. Beyond GitHub Copilot and well-funded efforts like Cursor maker Anysphere, Poolside, Augment, Magic, and Codeium, startups CodeRabbit and DeepCode both focus specifically on AI-powered code review applications. OpenAI recently updated its macOS ChatGPT app to directly edit code in popular app dev tools, and Anthropic -- one of Graphite's financial backers -- has an assistive programming tool of its own. Graphite has managed to carve out a niche for itself, however, partly by working to allay customers' fears of the reliability risks associated with AI-powered assistive coding tools. Unlike some tools on the market, Graphite lets customers define patterns unique to a codebase and set up filters for sensitive information that might compromise a codebase's security. "Revenue grew 20x in 2024, and we've scaled to serving tens of thousands of engineers at more than 500 companies, including Shopify, Snowflake, Figma, and Perplexity," Lutsky said. "Combined with our revenue growth, this new funding gives us many years of runway, a clear path to profitability, and the resources to invest aggressively in growth and AI." To make its platform even more attractive, Graphite has made its core code review offering free for teams of all sizes. Previously, only groups of 10 or fewer could use the company's tools at no charge. With the latest round of funding, Graphite has raised around $81 million in venture capital to date. The 30-person startup says that the newest tranche will be put toward product development and growing its NYC-based team.
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AI code assist startup Graphite raises $52M to try and keep ahead of the competition - SiliconANGLE
AI code assist startup Graphite raises $52M to try and keep ahead of the competition New York City-based artificial intelligence code review startup Graphite, officially known as Screenplay Studios Inc., said today it has raised $52 million in a Series B round of funding. Today's round was led by Accel and saw participation from Menlo Ventures through Anthology Fund, which is a $100 million initiative launched in partnership with the AI giant Anthropic PBC. A host of other high-profile backers, including Shopify Ventures, Figma Ventures, Andreessen Horowitz and The General Partnership were also involved in the round. Graphite was founded in 2020 by its Chief Executive Merrill Lutsky and others in early 2020, when it began life as a mobile development tooling company, but shortly after it entered that business it pivoted to focus on code review. Nowadays, it uses AI agents to automate that code review processes, providing feedback that aims to flag errors and other oversights as developers are compiling fresh code. The startup's code reviewer is called Diamond and it's powered by large language models from Anthropic and OpenAI. It works by automatically summarizing pull requests, transforming comments into actionable code suggestions. Through its instantaneous, high-signal feedback, the company claims Diamond is able to catch everything from bugs to logic errors to style inconsistencies and security vulnerabilities. In addition to catching these problems, Diamond will suggest changes based on human developer's comments on codebases. It can also summarize sections of code to explain what the intent or purpose is. Diamond sounds impressive, but it's worth noting that Graphite faces intense competition from dozens of other AI coding assistants. Its biggest rival is GitHub Inc.'s Copilot, and then there are dozens of other startups, including Poolside Inc., Augment Inc., Magic AI Inc. and Codeium Inc. There are much bigger players too, such as OpenAI, which recently introduced code editing tools in its macOS ChatGPT application, Google LLC has its Code Assist tools, and Anthropic has its own assistive programming tool too. Despite these challengers, Graphite has won over plenty of developers by reassuring them of the reliability of its code suggestions. Unlike many of those other tools, users can define patterns that are unique to any single codebase, then set up filters to catch sensitive information that might compromise its security. Rama Sekhar of Menlo Ventures said Graphite's Diamond "sets a new standard for code review, ensuring teams can trust and scale AI-generated code." Whatever the reason, Graphite appears to be growing pretty fast. It claims to have grown its revenue by more than 20 times in the last year, scaling its platform to serve engineers at more than 500 companies, including Shopify Inc., Snowflake Inc. and Perplexity AI Inc. To increase the attractiveness of its platform, Graphite is making its core code review offering freely available to teams of all sizes, having previously only allowed free access to teams of 10 or less. Looking ahead, Graphite said it plans to use the money from today's round to accelerate product development and grow its New York-based team. "Graphite is becoming the go-to tool for the world's most forward-thinking engineering teams," said Accel Partner Christine Esserman. "It's becoming the canonical layer where humans and agents collaborate on code."
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Graphite, an AI-powered code review platform, has raised $52 million in a Series B funding round led by Accel. The startup plans to use the funds to enhance its product and expand its team, as it competes in the growing market of AI coding assistants.
Graphite, an AI-powered code review platform, has successfully secured $52 million in a Series B funding round. The investment was led by Accel, with participation from Anthropic's Anthology Fund, Menlo Ventures, Shopify Ventures, Figma Ventures, Andreessen Horowitz, and The General Partnership 12.
Founded in 2020 by Tomas Reimers, Greg Foster, and Merrill Lutsky, Graphite initially focused on mobile development tooling before pivoting to code review. The startup has experienced significant growth, with revenue increasing 20-fold in 2024. It now serves tens of thousands of engineers across more than 500 companies, including high-profile clients such as Shopify, Snowflake, Figma, and Perplexity 1.
Graphite's platform leverages AI models from Anthropic and OpenAI to provide automated code review services. The company's core product, Diamond, offers features such as:
To address reliability concerns associated with AI-powered coding tools, Graphite allows customers to define patterns unique to their codebases and set up filters for sensitive information, enhancing security 1.
The AI coding assistant market is becoming increasingly competitive, with numerous players vying for market share. Notable competitors include:
With the new funding, Graphite plans to accelerate product development and expand its New York-based team of 30 employees. The company is also spinning out Diamond as a standalone product designed to catch coding bugs and errors automatically 1.
To increase adoption, Graphite has made its core code review offering free for teams of all sizes, removing the previous limitation of 10 or fewer users 12.
Christine Esserman, Partner at Accel, commented on Graphite's potential: "Graphite is becoming the go-to tool for the world's most forward-thinking engineering teams. It's becoming the canonical layer where humans and agents collaborate on code" 2.
The rise of AI-powered coding tools reflects a broader trend in the industry. According to GitHub's latest poll, the vast majority of respondents have adopted AI tools in some form. Jared Friedman, a Y Combinator partner, recently claimed that a quarter of YC's W25 startup batch have 95% of their codebases generated by AI 1.
As the AI coding assistant market continues to evolve, Graphite's latest funding round positions the company to compete effectively and potentially shape the future of collaborative coding between humans and AI agents.
AI-powered coding assistant startups Magic and Codeium have raised $320 million and $150 million respectively, signaling a major shift in the developer tools industry. These investments highlight the growing importance of AI in software development.
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Anysphere, the startup behind AI coding assistant Cursor, raises $105 million in a Series B round led by Thrive Capital and Andreessen Horowitz, reaching a $2.5 billion valuation. The funding highlights the growing interest in AI-powered coding tools and the competitive landscape in this sector.
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Supermaven, an AI-powered coding assistant, has raised $12 million in funding. The investment round includes contributions from founders of OpenAI and Perplexity, signaling strong industry support for AI-driven development tools.
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Poolside, an AI-powered coding startup, has raised $500 million in a Series B funding round led by Bain Capital Ventures. The investment brings the company's total funding to $626 million and values it at $3 billion, despite not having launched a product yet.
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Tessl, an AI-powered developer tooling startup, secures $125 million in funding to create a platform that aims to transform software development through natural language prompts and automated code maintenance.
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