Code Metal Secures $125 Million to Modernize Defense Software

Boston startup Code Metal has raised $125 million in a Series B funding round, bringing its valuation to $1.25 billion. The investment, led by Salesforce Ventures with participation from Accel and B Capital, arrives just months after a $36 million Series A. Founded in 2023, the company has carved out a specific niche: using artificial intelligence to translate and verify software code for defense and aerospace contractors.

Code Metal’s platform converts code written in languages like Python or C++ into lower-level languages such as Rust or hardware-specific code. This addresses a critical bottleneck for an industry reliant on aging, often obsolete, software. Early customers include L3Harris, RTX, and the U.S. Air Force.

CEO Peter Morales, a veteran of Microsoft and MIT Lincoln Laboratory, argues the market is waking up to a fundamental problem. "A lot of essential code, even for infrastructure like satellites, is old and written in languages few engineers know today," said Yan-David Erlich of investor B Capital. "Modernizing it is necessary, but manual translation can introduce dangerous bugs."

Code Metal claims its system generates tests at each translation step to verify accuracy. Morales states that for its current pipelines, the software either completes a translation correctly or declares no solution exists, aiming to prevent errors. The company is also rethinking how it charges for its service, moving away from traditional per-user fees. Instead, it negotiates contracts based on metrics like development time saved or lines of code translated.

To scale its operations, Code Metal has brought on experienced executives, including President Ryan Aytay, formerly of Tableau, and Laura Shen, ex of the U.S. National Security Council. The company says it is already profitable, a rare claim for a startup at this stage. Its challenge now is to prove that its approach to rebuilding the foundation of legacy systems can deliver lasting reliability in a sector where software failure is not an option.

Source: Wired