Codeium, a company specializing in AI-driven coding, is in discussions to secure a new round of funding at a valuation of $2.85 billion. This includes fresh capital, as reported by sources familiar with the deal.
Kleiner Perkins, a previous investor, is leading the funding round. This latest round arrives just six months after Codeium announced a $150 million Series C funding round, which valued the company at $1.25 billion post-money. General Catalyst, Kleiner Perkins, and Greenoaks participated in that round.
Codeium and Kleiner Perkins have not yet responded to requests for comment.
According to one source, the company’s annualized recurring revenue (ARR) has reached approximately $40 million. Based on this revenue figure, Codeium’s valuation is roughly 95 times its ARR, which is significantly higher than other competitors in the AI code editing space.
Anysphere, another AI-powered coding assistant provider, recently announced a funding round with a $2.5 billion valuation based on its reported $100 million in revenue, resulting in a valuation of 25 times its ARR.
Codeium faces competition from Anysphere, which investors view as the current industry leader, as well as Poolside, Magic, Microsoft’s GitHub Copilot, and others.
The startup differentiates itself by targeting businesses rather than individual developers. According to Codeium, over 1000 enterprise clients, including Anduril, Zillow, and Dell, use the platform’s free tier.
In November, Codeium launched Windsurf Editor, a tool capable of generating code without human intervention. This agentic AI approach, or “agent mode,” is also offered by competitors like Cursor.
Codeium was founded in 2021 by Varun Mohan and Douglas Chen, childhood friends and MIT graduates. Before Codeium, Chen worked at Meta developing software tools for VR headsets like the Oculus Quest. Mohan led the autonomy infrastructure team as a tech lead at Nuro, an autonomous delivery startup.
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