Blacksmith, a San Francisco-based cloud infrastructure company, has raised $45 million in Series B funding at a $550 million valuation. Peak XV Partners led the round with participation from existing investors Y Combinator and GV, bringing the company’s total funding to $58.5 million.
The platform helps engineering teams build, test and verify code changes before production deployment. Its customers include Supabase, Clerk, Ashby and Mercury. Blacksmith plans to direct most of the new capital toward computing infrastructure and expanding its engineering teams across New York and San Francisco. The company currently manages hundreds of thousands of computing cores.
The funding comes as AI coding tools such as Claude Code and Codex dramatically increase developer productivity. Chief executive Aditya Jayaprakash said faster code generation has created a validation bottleneck, with teams producing several times more pull requests through coding agents. Every change still requires building, testing and validation before deployment, making continuous integration infrastructure increasingly critical.
Blacksmith originally focused on continuous integration workloads, running GitHub Actions on dedicated computing infrastructure with optimised caching and storage designed for software testing. The company says migration requires only a single line change within a workflow file, allowing teams to move workloads without rebuilding development processes.
Adoption has accelerated rapidly. More than 6,000 companies now use the platform, up from roughly 800 at the previous funding round. Blacksmith reports that continuous integration workloads have grown between 5% and 10% every week since January.
The company has expanded beyond infrastructure through Codesmith, a cloud coding agent that allows developers to delegate coding tasks to an AI system. The tool can build features, fix bugs and investigate failed validation checks. Blacksmith is also developing Codesmith QA to test changes autonomously before they are merged, positioning the platform closer to the full software development lifecycle.
This strategy reflects a broader shift in software engineering. As AI generates code at unprecedented speed, supporting infrastructure must process larger volumes without creating new delays. Blacksmith competes with GitHub Actions and cloud providers including AWS, Azure and Google Cloud, which are also developing their own validation capabilities. The company is betting on specialised computing for continuous integration workloads combined with an expanding AI-powered software layer.
Peak XV Partners, which manages more than $10 billion across its funds, backed the company as AI reshapes software development. The investor’s portfolio spans technology companies across India, Asia-Pacific and other markets.
