India, Aug. 14 -- Peak XV Partners led a $45 Mn Series B funding round of San Francisco-based AI code testing startup Blacksmith at a valuation of $550 Mn, as the VC firm steps up investments in US-based AI and developer tools companies

Existing investors Google Ventures (GV) and Y Combinator also participated in the round. Blacksmith closed the funding round in March 2026 but announced it now. The latest funding takes Blacksmith's total capital raised to $58.5 Mn.

The startup plans to deploy a significant portion of the fresh capital to expand its computing infrastructure amid rising demand for tools that can test and validate AI-generated code.

Blacksmith cofounder and CEO Aditya Jayaprakash said improvements in AI coding models are ...