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AI Testing Startup Blacksmith Reaches $550M Valuation After New Funding Round

AI code-testing startup Blacksmith has raised $45 million in a Series B round, bringing its valuation to $550 million, nearly nine times higher than less than a year ago.

Peak XV Partners led the round, with existing backers GV and Y Combinator also participating. The latest funding brings Blacksmith’s total capital raised to $58.5 million.

Demand Grows As AI Speeds Up Coding

Founded in 2024, Blacksmith helps companies build, test and validate software before it reaches production. Customer numbers have grown from more than 700 to over 5,000 in less than a year, with companies including Mercury, Supabase, Clerk, Ashby and Expensify using the platform.

As tools such as Cursor, OpenAI’s Codex and Anthropic’s Claude Code make software development faster, companies are producing more code, increasing the need for reliable testing.

“Validating code is still a bottleneck, and it’s an even bigger bottleneck because people are writing even more,” CEO and co-founder Aditya Jayaprakash said.

From CI Platform To AI Coding Tools

Blacksmith initially focused on cloud infrastructure for continuous integration, allowing companies to run the builds and tests required before releasing software. It has since expanded into AI-powered development with Codesmith, an agent designed to automatically fix failed code checks.

The company reached a $10 million annualized revenue run rate with a team of just 10 people and has since expanded to around 30 employees. Revenue is now in the tens of millions of dollars, while some major customers spend more than $1 million annually on the platform.

Competition Remains Intense

Blacksmith faces competition from established platforms including GitHub Actions, as well as AI coding products and cloud providers such as Amazon Web Services, Microsoft Azure and Google Cloud.

Jayaprakash said the company aims to differentiate itself through faster testing and competitive pricing. Blacksmith plans to expand its platform further, with the broader goal of helping developers write, test and merge software more efficiently.

Paramount Closes $110 Billion Warner Bros. Discovery Deal, Creating Skydance Entertainment Giant

Paramount has completed its $110 billion acquisition of Warner Bros. Discovery, bringing together two of the most powerful names in media under a new combined company, Skydance. The deal, announced Tuesday, creates one of the largest entertainment mergers ever completed and reshapes the competitive landscape across streaming, film, television and cable.

A New Power Center In Global Entertainment

The combined company unites Paramount+ and HBO Max, alongside a broad portfolio of networks that includes CBS, CNN, MTV, TBS, Comedy Central and Food Network. It also gives Skydance control over some of the industry’s most valuable franchises, including The Lord of the Rings, Game of Thrones, the DC Universe and Yellowstone.

For the industry, the scale of the transaction is as significant as the assets themselves. In an era defined by streaming competition and rising content costs, ownership of established intellectual property has become a strategic advantage akin to controlling a premium distribution network in a previous media cycle.

Ellison Expands His Influence

The merger places one of the world’s largest entertainment studios under the control of David Ellison, who only last year completed the combination of Skydance Media and Paramount. With this latest transaction, Ellison is accelerating his rise as one of Hollywood’s most influential executives.

The Ellison family remains Skydance’s largest shareholder, backed by the financial power of Larry Ellison, the Oracle co-founder and David Ellison’s father. That support gives the company considerable flexibility as it integrates two sprawling media businesses and seeks to compete more aggressively across platforms.

Legal Hurdles Cleared Before Closing

The deal’s completion follows settlements with a coalition of U.S. states and a Hollywood writers’ union, removing the principal legal obstacles that had threatened to delay or derail the merger.

Paramount first announced in February that it would pursue Warner Bros. Discovery after a bidding contest with Netflix, which had earlier struck its own agreement to acquire Warner Bros.’ film and television studios and streaming operations, excluding the cable networks. Paramount strengthened its offer by promising shareholders additional cash if the deal failed to close by a set deadline and by agreeing to cover the breakup fee owed to Netflix.

What Skydance Says Comes Next

“Today is a historic day, not just for Skydance but for our entire industry,” Ellison said in a statement. “From the start, our ambition was to bring these two storied studios together and create a stronger competitor, with the talent, resources, and reach to tell great stories in every genre, on every platform, for audiences everywhere. Our focus now turns to the future: building a company that empowers creatives, entertains audiences and rewards shareholders. We couldn’t be more excited to get to work.”

Skydance said the combined company will generate nearly $70 billion in annual revenue. The company’s Class B shares are set to begin trading on the New York Stock Exchange today under the ticker symbol SKYD.

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