Recently, AI code review startup CodeRabbit announced a $60 million Series B funding round, with the company's valuation reaching $550 million. This round was led by Scale Venture Partners, with participation from Nvidia's venture capital division NVentures and returning investors CRV. With this funding, CodeRabbit's total funding has now reached $88 million.

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Image source note: The image is AI-generated, and the image licensing service provider is Midjourney.

The founder of CodeRabbit, Harjot Gill, was a co-founder of a company called FluxNinja. After observing that remote engineers were gradually adopting AI code generation tools like GitHub Copilot, he realized that this would lead to bottlenecks in the code review process. Therefore, he founded CodeRabbit in early 2023 and acquired FluxNinja.

As more developers use AI to write code, errors frequently occur, forcing engineers to spend a lot of time correcting them. The emergence of CodeRabbit aims to address this challenge. Gill stated that CodeRabbit's AI platform can effectively identify errors in code and provide feedback, helping teams like a colleague. Companies using CodeRabbit can reduce the number of people involved in code reviews by half.

Currently, CodeRabbit's monthly growth rate is 20%, and its annual recurring revenue (ARR) exceeds $15 million. Its clients include over 8,000 companies such as Chegg, Groupon, and Mercury, helping them save significant time on tedious code review tasks.

Although CodeRabbit has achieved some success in the market, it is not the only competitor. This year, Graphite also raised $52 million in a Series B funding round, while Greptile is seeking $30 million in a Series A round through negotiations with Benchmark. At the same time, mainstream AI coding assistants like Anthropic's Claude Code and Cursor also offer code review features. Gill believes that customers will ultimately prefer independent products like CodeRabbit, as they are far superior in technical depth and breadth compared to packaged solutions.

Although the rise of CodeRabbit indicates the popularity of AI code review tools, AI is still not reliable enough in fixing "unusable" code generated by AI. This phenomenon has given rise to a new job role — "code cleanup specialist."

Key Points:  

🌟 CodeRabbit completed a $60 million funding round, with a valuation of $550 million, attracting multiple investors.  

💻 The platform can effectively identify code errors, helping companies reduce the need for review personnel.  

🚀 Companies using CodeRabbit have an annual recurring revenue of over $15 million, and the market response has been positive.