Code_Metal_AI Raises $125M Series B
Code_Metal_AI, a startup focused on code translation for the defense and semiconductor industries, has raised a $125 million Series B round. The company's customers reportedly include RTX, L3Harris, and the U.S. Air Force. The funding highlights investor interest in specialized AI tools for legacy system modernization within the defense sector.
- The Series B round was led by Salesforce Ventures, with participation from existing investors Accel and B Capital, and new investors including RTX Ventures and others, bringing the company's valuation to $1.25 billion. - Code_Metal_AI has hired Ryan Aytay, former CEO of Tableau, as its new President and Chief Operating Officer to scale the company's operations and commercial partnerships. - The company's core technology performs "verifiable code translation," using a combination of large language models and formal methods to convert legacy code from languages like Ada, COBOL, and Fortran into modern languages such as C++ and Rust. This process includes mathematical proof that the new code is functionally identical to the original, a critical requirement for mission-critical defense systems. - Co-founders Peter Morales (CEO) and Alex Showalter-Bucher are alumni of MIT Lincoln Laboratory, where they worked on AI systems for applications like countering drone attacks. Morales's initial concept for the company stemmed from his earlier work at BAE Systems on the F-35 fighter jet's radar systems. - The Department of Defense (DOD) faces significant challenges with its aging software, with some systems being over 50 years old, leading to high maintenance costs, cybersecurity vulnerabilities, and difficulties integrating modern technologies like AI. This makes modernizing legacy code a top priority for the Pentagon. - Prior to this Series B, Code_Metal_AI had raised a $36.5 million Series A led by Accel in late 2025 and a $13 million seed round in late 2024. The company was on track to deliver revenue in the eight figures in 2025. - The company's platform allows developers to write code in high-level languages like Python, Julia, or MATLAB, which can then be automatically translated and optimized for specific hardware chipsets, such as those found in drones, sensors, and other edge devices.
