Codeium in Talks for New Funding Round at $2.85 Billion Valuation

AI-coding startup Codeium is reportedly in talks to raise a new round of funding at a $2.85 billion valuation, according to TechCrunch. The funding round is being led by returning investor Kleiner Perkins, although the exact amount of new capital being raised has not been confirmed.

This development comes just six months after Codeium raised $150 million in a Series C funding round, which brought its valuation to $1.25 billion. The company, which focuses on AI-powered coding solutions, has achieved approximately $40 million in annualized recurring revenue (ARR), giving it a valuation multiple significantly higher than its competitors.

Codeium, founded in 2021 by Varun Mohan and Douglas Chen, distinguishes itself by targeting enterprise customers rather than individual developers. Its platform is reportedly used by over 1,000 enterprise clients, including notable names like Anduril, Zillow, and Dell. The company also introduced the Windsurf Editor, an agentic AI tool capable of writing code autonomously, last November.