Code Metal Raises $125M Series B at $1.25B Valuation for AI Code Translation

Quick Facts

• Code Metal raised $125 million Series B at $1.25 billion valuation, up from $250 million in November
• Salesforce Ventures led the round with customers including U.S. Air Force, RTX, L3Harris and Toshiba
• The Boston startup translates legacy code languages like COBOL and Fortran into modern languages like Rust and C++

Code Metal closed a $125 million Series B funding round at a $1.25 billion valuation, marking a five-fold increase from its November Series A valuation of $250 million.

Salesforce Ventures led the round with participation from Accel, B Capital, Smith Point Capital, J2 Ventures, Shield Capital, Overmatch, and RTX. The Boston-based startup develops AI-powered code translation tools for defense and regulated industries.

CEO and co-founder Peter Morales started Code Metal two years ago after working at BAE Systems optimizing machine learning algorithms for F-35 fighter jets. His co-founder Alex Showalter-Bucher spent a decade at MIT Lincoln Laboratory working with military agencies.

The company’s platform translates software written in languages like Python, Julia, Matlab, and C++ into lower-level languages such as Rust, VHDL, and Nvidia CUDA. Code Metal also modernizes legacy defense systems that rely on decades-old languages including COBOL, Ada, and Fortran.

What sets Code Metal apart is its verification approach. The platform generates test harnesses during translation and can decline to complete translations when it cannot verify correctness. The company uses a neuro-symbolic approach to mathematically prove code accuracy.

“AI can generate code at unprecedented speed, but in mission-critical environments, speed without proof is not enough,” Morales said. “We are building the infrastructure that ensures software can be trusted before deployment.”

Code Metal has secured contracts worth tens of millions of dollars with the U.S. Air Force, L3Harris, Raytheon, Toshiba, automotive suppliers, and consumer electronics brands. Accel’s Steve Loughlin said Code Metal is the fastest-growing company in his firm’s early-stage portfolio.

The funding comes as 92% of organizations still use legacy technologies despite modernization needs. The application modernization services market is projected to reach $51.92 billion by 2029.

Code Metal also announced that Ryan Aytay, former CEO of Tableau, joined as President and Chief Operating Officer. Aytay previously held senior leadership roles at Salesforce.

“AI code generation has hit an inflection point: mission-critical industries cannot deploy what they cannot verify,” said Rob Keith, Partner at Salesforce Ventures.

The Pentagon has been pushing its software-defined initiative, recognizing that future conflicts will be won by whoever can update and deploy code fastest. Code Metal frames legacy code translation as both a technical challenge and national security requirement.

Read more: AI code translation startup Code Metal reels in $125M at $1.25B valuation