San Francisco-based startup, CodeRabbit, said Wednesday it raised $143 million in a Series C funding round, giving the company a $1.5 billion valuation as demand grows for tools that review and monitor software written by artificial intelligence.
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, as well as existing backers including CRV, Scale Venture Partners, and Flex Capital. The company has now raised at least $219 million since it was founded in 2023.
CodeRabbit said the new funding will support international expansion and further product development. The company recently opened a London office and plans to expand further across Europe and enter Japan and other Asian markets.
Alongside the funding announcement, CodeRabbit introduced what it calls “Agentic Change Management,” a platform designed to help organizations review, prioritize, explain, and monitor software changes generated by both human developers and AI coding agents.
The platform includes new tools for routing pull requests, analyzing the broader impact of code changes, and continuously scanning production code for security vulnerabilities and maintainability risks.
CodeRabbit says it performs more than 2 million code reviews each week and serves more than 17,000 customers, including Nvidia, BMW, Indeed, JFrog, Trivago, Adyen, and Campfire. The company also plans to invest more than $10 million over the next year to keep its AI code review and agent capabilities free for open-source projects and maintainers.
The funding comes as AI coding assistants generate increasing amounts of software, creating a new challenge for engineering teams: reviewing and governing a flood of AI-generated code before it reaches production.
“There is massive pull in the market right now for a product like this,” CodeRabbit CEO Harjot Gill told Bloomberg. “It’s almost like a land grab moment for us.” Atomico partner Luca Eisenstecken, who is joining CodeRabbit’s board, said organizations will increasingly need independent systems that can validate software regardless of which AI model produced it.
What this means for software companies
The investment suggests that the next wave of AI infrastructure may focus less on generating code and more on controlling it. As companies adopt AI-powered development tools, governance, security, and quality assurance become larger operational risks.
For businesses, that could mean spending more on software oversight even as AI reduces the cost of writing code. For developers, tools that automatically explain changes, route reviews, and detect vulnerabilities may become standard parts of the engineering workflow.
The tradeoff is that these systems introduce another layer of automation that teams must trust and manage. Whether platforms like CodeRabbit become essential infrastructure will depend on how accurately they can identify real risks without slowing down the speed that AI coding promises.
Read more: GitLab is expanding its MSP program for AI-driven DevSecOps, highlighting how partners can turn secure software development into managed services.