AI code-testing infrastructure startup Blacksmith has raised $66 million in a Series C funding round led by Sequoia Capital, valuing the startup at $1 billion.

The round also saw participation from Premji Invest and existing investors Peak XV Partners, GV (formerly Google Ventures) and Y Combinator, bringing Blacksmith's total funding to approximately $125 million.

The latest investment follows a $45 million Series B round led by Peak XV Partners at a valuation of $550 million. That round was completed in March 2026 but announced in August.

Blacksmith said it will use the fresh capital to expand its team and computing infrastructure as demand for software testing grows alongside the adoption of AI-powered coding tools.

Founded in 2024 by Aditya Jayaprakash, Aayush Shah and Aditya Maru, Blacksmith provides infrastructure for building and testing software through a process known as continuous integration (CI). This involves running automated checks on code changes before they are merged into an existing codebase.

The startup said the increasing use of AI coding agents has accelerated software development, creating additional pressure on the infrastructure responsible for testing and validating code.

Aditya Jayaprakash, Blacksmith's co-founder and CEO, said developers who previously submitted three or four pull requests a day were now producing substantially more, leaving existing testing systems struggling to cope.

He said engineering teams were finding that “their CI infrastructure can't keep up” with the growing volume of code.

Blacksmith claims its platform can complete CI jobs twice as fast and at 60% lower cost on average, while reducing the need for customers to manage and scale their own computing infrastructure.

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