Codeium, an AI coding platform, is reportedly raising funds at a US$2.85 billion valuation, with Kleiner Perkins leading the round, according to two sources with knowledge of the deal.

This follows its series C in August 2024, where it raised US$150 million at a US$1.25 billion valuation.

The current funding amount remains unconfirmed.

Codeium has reached an estimated US$40 million in annual recurring revenue (ARR), giving it a valuation multiple of about 70 times ARR.

The Sillicon Valley-based startup focuses on enterprise clients, with its free tier adopted by over 1,000 enterprise customers, including Anduril, Zillow, and Dell.

In November, it launched the Windsurf Editor, an AI tool for code generation, competing with Anysphere’s Cursor.

Founded in 2021 by MIT graduates Varun Mohan and Douglas Chen, the company has strong leadership, with Chen having worked at Meta and Mohan managing autonomy projects at Nuro.