Graphite, a startup specializing in AI-driven code reviews, has raised $52 million in a Series B funding round led by Accel, with significant participation from Menlo Ventures and Anthology Fund. This investment catapults the company's valuation to an impressive $100 million.
Founded in 2020 by CEO Merrill Lutsky, Graphite initially began as a mobile tool developer but has since pivoted to focus on enhancing code review processes. Utilizing a powerful AI agent, Graphite automates code reviews, providing developers with critical suggestions and bug identifications as they write new code. The AI assistant, named Diamond, is powered by advanced language models from both Anthropic and OpenAI.
Diamond stands out by grouping pull requests and translating developer feedback into actionable suggestions. It can not only detect bugs and logical errors but also ensure compliance with coding standards and identify potential security vulnerabilities. By summarizing code snippets and providing contextual explanations about their purpose, Diamond enhances the overall coding experience.
Despite the remarkable capabilities of its AI, Graphite operates in a fiercely competitive landscape. Major competitors include GitHub’s Copilot, along with emerging startups such as Poolside, Augment, Magic AI, and Codeium. Moreover, tech giants such as OpenAI and Google are also competing with their tools—OpenAI with code editing features integrated into ChatGPT for macOS, and Google with its Code Assist tool.
In a market rich with alternatives, Graphite has managed to carve out a loyal user base by delivering reliable and personalized feedback to developers. What sets Graphite apart is its unique feature that allows users to define specific coding styles and set filters to detect vulnerabilities that might compromise security.
Graphite has experienced a significant growth trajectory, claiming a 20-fold increase in revenue over the past year and now supports engineers from over 500 companies, including notable names like Shopify, Snowflake, and Perplexity AI. To further attract users, Graphite recently made its core code review service available for free to teams of all sizes, expanding beyond its previous limit of 10 members for free service usage.
Looking ahead, Graphite plans to leverage the new funds to accelerate product development and expand its team in New York. This strategic move is expected to bolster their market presence and enhance the product offerings further.
In conclusion, the successful funding round and innovative advancements position Graphite as a promising player in the AI-enabled development landscape, paving the way for significant contributions to efficient coding practices.