Codeium, an AI-driven coding startup, is in discussions to secure a new funding round, aiming for a valuation of approximately $2.85 billion. This effort follows a recent $150 million Series C funding round completed just six months ago, which valued the company at $1.25 billion.
The upcoming funding round is reportedly led by returning investor Kleiner Perkins. Codeium has achieved around $40 million in annualized recurring revenue (ARR), resulting in an implied valuation of roughly 70 times its ARR. This multiple significantly exceeds the valuations of other companies in the AI coding sector.
For comparison, Anysphere, the creator of the AI coding assistant Cursor, recently raised funds at a $2.5 billion valuation based on reported revenues of $100 million, translating to a 25 times ARR valuation.
Codeium differentiates itself by focusing on enterprise clients rather than individual developers. The company claims that over 1,000 enterprise customers, including notable names like Anduril, Zillow, and Dell, utilize its free tier services.
In November, Codeium launched the Windsurf Editor, capable of autonomously generating code, a feature referred to as agentic AI. The startup was founded in 2021 by Varun Mohan and Douglas Chen, both MIT graduates with previous experience at Meta and Nuro.
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