Codeium, an AI-powered coding startup, is raising a new round of funding at a $2.85 billion valuation, including fresh capital, according to two sources with knowledge of the deal.

The round is being led by returning investor Kleiner Perkins, the people said. The new round comes just six months after Silicon Valley-based Codeium announced that it had closed a $150 million Series C at a $1.25 billion post-money valuation led by General Catalyst with participation of Kleiner Perkins and Greenoaks. TechCrunch could not confirm the dollar amount of the new funding.

Codeium and Kleiner Perkins didn’t respond to a request for comment.

The company has reached about $40 million in annualized recurring revenue (ARR), one person said. Based on that revenue figure, Codeium’s implied valuation is roughly 70 times ARR. That’s a lot higher than other AI code editing companies.

Last month, Anysphere, the maker of AI-powered coding assistant Cursor, announced a new funding round of financing at a $2.5 billion valuation. Based on its reported $100 million in revenue, investors assigned it a 25 times ARR valuation multiple.

In addition to Anysphere, which many investors say is the current leader in the category, Codeium competes with Poolside, Magic, Microsoft’s GitHub Copilot, and many others. While it’s not clear how Codeuim negotiated such a rich valuation, sources told TechCrunch that the company wasn’t looking to raise new funds before investors approached it about this round.

More on Codeium fundraising and AI efforts on TechCrunch

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Meta on Tuesday announced that it’ll host its first-ever dev conference dedicated to generative AI. Called LlamaCon after Meta’s Llama family of generative AI models, the conference is scheduled to take place on April 29. Meta said that it plans to share the latest on its open source AI developments to help developers build amazing apps and products.

Additional details will be made available soon, said Meta. The company’s annual developer conference, Meta Connect, will be held later in the year, in September.

Meta several years ago embraced an open approach to developing AI technologies in a bid to foster an ecosystem of apps and platforms. It hasn’t been disclosed how many apps or services have been built on top of it, but it’s previously noted that Goldman Sachs, Nomura Holdings, AT&T, DoorDash, and Accenture use Llama.

The company claims to have hundreds of millions of downloads of the model, and at least 25 partners hosting Llama, including Nvidia, Databricks, Groq, Dell, and Snowflake, some of which have built additional tools that, for example, let the models reference proprietary data and enable them to run at lower latencies.

But Meta was reportedly caught flat-footed by the rise of Chinese AI company DeepSeek, which managed to release open AI to rival Meta’s own. Reportedly, Meta believes that one of DeepSeek’s newer models could outperform the next version of Llama, which is set to be released in the coming weeks. Meta is said to have scrambled to set up war rooms to decipher how DeepSeek lowered the cost of running and deploying models, so that it could apply those learnings to Llama’s own development.

Meta recently said that it would spend as much as $80 billion on projects related to AI this year, including AI hires and the construction of new AI data centers.

More on Meta’s upcoming LlamaCon on TechCrunch

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Elon Musk's AI company, xAI, has officially launched its latest flagship AI model, Grok 3. Released late on February 17, 2025, Grok 3 introduces significant advancements over its predecessor, Grok 2, and aims to compete with leading AI models such as OpenAI's GPT-4o and Google's Gemini. The rollout includes integration into the Grok app for iOS and web platforms, along with new features designed to enhance its utility in various domains.

Grok 3 represents a family of models rather than a single entity. Among these are Grok 3 mini, which prioritizes speed over accuracy, and specialized reasoning models like Grok 3 Reasoning and Grok 3 mini Reasoning. These reasoning variants are tailored to handle complex tasks in mathematics, science, and coding by performing thorough self-checks before delivering answers. Users can access advanced reasoning capabilities through modes such as Big Brain, which is particularly suited for challenging queries.

The development of Grok 3 relied on substantial computational resources, including a Memphis-based data center equipped with approximately 200,000 GPUs. According to Musk, the model was trained using 10x more computing power than its predecessor and an expanded dataset that includes legal filings. This enhanced training infrastructure has reportedly resulted in a model that is "an order of magnitude more capable" than Grok 2.

xAI claims that Grok 3 outperforms competitors on benchmarks like AIME (focused on math questions) and GPQA (testing PhD-level knowledge in physics, biology, and chemistry). Additionally, it has shown competitive results in Chatbot Arena, a crowdsourced evaluation platform. The new DeepSearch feature further extends Grok's capabilities by scanning the internet and Musk's social network X to deliver concise abstracts in response to user queries.

More on Musk’s Grok 3 benchmarks on Testing Catalog

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Just before Christmas in 2023, the small team at Cognition was struggling to set up a particularly complex data server for the San Francisco–based AI startup’s fledgling coding assistant, Devin. They’d spent hours poring over installation documents and trying different commands but just couldn’t get it to work. Tired and frustrated, they decided to see how Devin would handle it.

As the AI sprung into action, it befuddled its creators. It ran the most witch-craft, black-magic-looking commands, cofounder and head of product Walden Yan, 21, recalls. For a time, it seemed Devin wouldn’t do any better than they had. Then a server terminal light that had been red for hours turned green. The data server was up and running.

Devin had deleted a faulty system file the team had overlooked, they realized. That was the moment it really hit me how much software engineering is going to change, Yan says. It was the first major task Devin ever completed, and proof of concept for Cognition’s vision of AI taking the grunt work out of coding. Now, almost a year later, Devin is handling basic engineering jobs—spotting and fixing bugs, updating chunks of code and migrating them between platforms. Give it a simple prompt—clean up this codebase—and it creates a plan of action and executes it. Most times, it works.

It’s a different approach from other better-known and bigger players in the still-burgeoning field, like Github (which Microsoft bought for $7.5 billion in 2018) and $1.3 billion–valued Codeium, both of which provide digital assistants that help people write code with AI-powered suggestions. But Devin is an autonomous AI agent that, in theory, writes the code itself—no people involved—and can complete entire projects typically assigned to developers (the name Devin comes from dev, an abbreviation for the term). What we saw is a real opportunity, says Scott Wu, 28, Cognition’s cofounder and CEO, to move from text completion to task completion.

AI-generated code is already beginning to reshape the industry. In October, Google CEO Sundar Pichai said more than a quarter of new code at the tech giant is written by AI. At Github, which hit a $2 billion annual run rate in 2024, its code completion tool has accounted for 40% of revenue growth this year, Microsoft CEO Satya Nadella said in July. Pitchbook analyst Brendan Burke says AI coding has become the most-funded use case in generative AI, with startups focused on it raising over $1 billion in the first half of 2024 alone.

More about Cognition’s AI programming tool, Devin on Forbes

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AI agents are the newest frontier in the AI space. AI companies are racing to build their own models, and offerings are constantly rolling out to enterprises. But which AI agent is the best? On Wednesday, Galileo launched an Agent Leaderboard on Hugging Face, an open-source AI platform where users can build, train, access, and deploy AI models. The leaderboard is meant to help people learn how AI agents perform in real-world business applications and help teams determine which agent best fits their needs.

On the leaderboard, you can find information about a model's performance, including its rank and score. At a glance, you can also see more basic information about the model, including vendor, cost, and whether it's open source or private. The leaderboard currently features the 17 leading LLMs, including models from Google, OpenAI, Mistral, Anthropic, and Meta. It is updated monthly to keep up with ongoing releases, which have been occurring frequently.

To determine the results, Galileo uses benchmarking datasets, including the BFCL (Berkeley Function Calling Leaderboard), τ-bench (Tau benchmark), Xlam, and ToolACE, which test different agent capabilities. The leaderboards then turn this data into an evaluation framework that covers real-world use cases.

BFCL excels in academic domains like mathematics, entertainment, and education, τ-bench specializes in retail and airline scenarios, xLAM covers data generation across 21 domains, and ToolACE focuses on API interactions in 390 domains, explains the company in a blog post. Galileo adds that each model is stress-tested to measure everything from simple API calls to more advanced tasks such as multi-tool interactions. The company also shared its methodology, reassuring users that it uses a standardized methodology to evaluate all AI agents fairly. The post includes a more technical dive into the model ranking.

More on Galileo’s AI Agent Leaderboard on ZDNET

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Meta Platforms is assembling a specialized team within its Reality Labs division, led by Marc Whitten, to develop the AI, sensors, and software that could power the next wave of humanoid robots. According to the memo, Meta Chief Technology Officer Andrew Bosworth said that the robotics product group would focus on developing consumer humanoid robots with a goal of maximizing Llama's platform capabilities.

Llama refers to Meta’s primary series of AI foundation models, which support a range of generative AI tools across the company's social media platforms. We believe expanding our portfolio to invest in this field will only accrue value to Meta AI and our mixed and augmented reality programs, Bosworth said.

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How is Meta planning to advance its robotics work?

Marc Whitten, former CEO of self-driving car company Cruise, has joined Meta as vice president of robotics, Reuters reported quoting Meta's CTO Andrew Bosworth. Bloomberg News reported the hiring first.

Meta has also appointed John Koryl as vice president of retail. Koryl, the former CEO of second-hand e-commerce platform The RealReal, will focus on boosting direct sales of Meta’s Quest mixed reality headsets and AI wearables, including Ray-Ban Meta smart glasses, developed in partnership with EssilorLuxottica.

Unlike Tesla which is manufacturing its own Optimus robot, Meta's initial play is to become the backbone of the industry similar to what Google's Android did for smartphones. The company has already started talks with robotics firms like Unitree Robotics and Figure AI. With plans to hire 100 engineers this year and billions committed to AI and AR/VR, Meta is placing a major bet on humanoid robots as the next leap in smart home technology.

More on Meta’s AI-powered robotics platform on Yahoo Finance

OpenAI will ship GPT-5 in a matter of months and streamline its AI models into more unified products, said CEO Sam Altman in an update on Feb. 12.

We want to do a better job of sharing our intended roadmap, and a much better job simplifying our product offerings, said Altman in an X post introducing several updates about the company's GPT and o series. Specifically, Altman says the company plans to launch GPT-4.5 as its last non-chain-of-thought model and integrate its latest o3 reasoning model into GPT-5.

The estimated timing for GPT-4.5 is a matter of weeks, and GPT-5 in a matter of months, Altman responded in a comment about the ETA.

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OpenAI's previously comfortable position atop the AI throne has been challenged lately with the introduction of DeepSeek's reasoning model R1. The Chinese company reportedly made the model for a fraction of the price and offered it free of charge as a chatbot, and significantly cheaper than OpenAI models for API access. In addition to rocking the stock market, DeepSeek's arrival on the scene threw OpenAI and other AI companies' business strategy into question, proving AI models can be made cheaply and more accessibly.

Perhaps, Altman's announcement represents changing tack. Instead of demanding $200 a month for exclusive or early access to certain model features with its Pro plan the new strategy seems to be getting its products into as many hands as possible to beat the competition with market capture and user-friendly experience.

"A top goal for us is to unify o-series models and GPT-series models by creating systems that can use all our tools, know when to think for a long time or not, and generally be useful for a very wide range of tasks," said Altman in the lengthy post. That means OpenAI won't ship o3 as a standalone model and will instead incorporate its reasoning abilities, which improves accuracy and is better for more complex problems, into GPT-5.

More on GPT-5 pricing and features on Mashable

Sam’s new “Three Observations” blog post

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ByteDance launched Goku, an advanced AI model for image and video generation. The Chinese tech company's latest AI models can generate realistic videos of people interacting with products, potentially transforming how companies create advertising content. However, it also lowers the barrier for businesses to create value.

Goku produces high-quality visuals from text prompts. It uses rectified flow transformers, a type of AI model that generates images and videos more smoothly and accurately by improving the way information flows through the model. Think of it like a high-tech artist that refines its brushstrokes to make digital creations look more natural and realistic.

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Goku models can generate realistic product videos without human actors. ByteDance built its new Goku AI models using a massive dataset of about 160 million image-text pairs and 36 million video-text pairs, according to the accompanying paper. The data comes from academic datasets, internet sources, and partner organizations. Unlike other video models, Goku can create both still images and videos from text descriptions. The system uses a new transformer architecture with 2 to 8 billion parameters that handles both formats simultaneously.

In benchmarks, Goku performs well in both image and video generation. The video model, Goku-T2V, scored 84.85 on VBench, surpassing similar tools from companies like Kling and Pika. The output quality also shows clear improvements over ByteDance's previous Jimeng AI model.

ByteDance has shared several sample clips on the project page, ranging from realistic to creative scenarios. While the company hasn't specified Goku's limitations, the examples are all four-second clips at 24 FPS in 720p resolution.

More on Goku Open Source video generation tools

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A consortium of investors led by Elon Musk is offering $97.4 billion to buy the nonprofit that controls OpenAI, raising the stakes in his battle with Sam Altman over the company behind ChatGPT.

Musk’s lawyer, Marc Toberoff, said he submitted a bid for all the nonprofit’s assets to OpenAI’s board of directors Monday. The unsolicited offer adds a complication to Altman’s carefully laid plans for OpenAI’s future, including converting it to a for-profit company and spending up to $500 billion on AI infrastructure through a joint venture called Stargate. He and Musk are already fighting in court over the direction of OpenAI.

It’s time for OpenAI to return to the open-source, safety-focused force for good it once was, Musk said in a statement provided by Toberoff. We will make sure that happens. Altman quickly rejected the offer on X. He wrote, No thank you but we will buy twitter for $9.74 billion if you want, using the previous name for the Musk-owned social-media platform and moving the decimal point in the billionaire’s bid for OpenAI one space to the left.

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In a Slack message to employees, Altman wrote, Our structure ensures that no individual can take control of OpenAI…These are tactics to try and weaken us because we are making great progress.

Altman and Musk co-founded OpenAI in 2015 as a charity. In 2019, after Musk left the company and Altman became chief executive, OpenAI created a for-profit subsidiary that has served as a vehicle for it to raise money from Microsoft and other investors. Altman is in the process of turning the subsidiary into a traditional company and spinning out the nonprofit, which would own equity in the new for-profit.

One of the thorniest questions in the conversion has been how the nonprofit will be valued. Musk’s bid sets a high bar and might mean that he, or whoever runs the nonprofit, would end up with a large and possibly controlling stake in the new OpenAI.

The bid is being backed by Musk’s artificial intelligence company xAI, which could merge with OpenAI following a deal. He also has several investors backing him, including Valor Equity Partners, Baron Capital, Atreides Management, Vy Capital and 8VC, a venture firm led by Palantir co-founder Joe Lonsdale. Ari Emanuel, CEO of Hollywood company Endeavor, is backing the offer through his investment fund.

More on Musk’s bid for OpenAI on The Wall Street Journal

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OpenAI just made its Super Bowl debut with a 60-second spot that positions AI alongside humanity’s greatest innovations. The commercial traces humanity’s technological evolution through a distinctive pointillism-inspired animation style, transforming abstract dots into iconic images of progress – from early tools like fire and the wheel to modern breakthroughs like DNA sequencing and space exploration.

It culminates with modern AI applications, showing ChatGPT handling everyday tasks like drafting business plans and language tutoring. The ad cost roughly $14 million for the first-half placement.

The commercial, developed under new CMO Kate Rouch, deliberately avoids mentioning AGI or superintelligence, which are at the core of OpenAI’s mission. Instead, it focuses on practical applications. We want the message to feel relevant to the audience that is watching the Super Bowl, which includes tens of millions of people who have no familiarity with AI, Rouch tells The Verge, noting there should be about 130 million people watching.

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While OpenAI’s text-to-video AI Sora was used during conception to rapidly prototype ideas and explore different camera treatments, the final animation was created entirely by human artists. This is a celebration of human creativity and an extension of human creativity, Rouch says, addressing the decision not to use AI-generated content in the final product.

The campaign arrives at what OpenAI sees as a pivotal moment. We’re at the dawn of the intelligence age and you can participate today, Rouch says, a reference to CEO Sam Altman’s recent blog. This is potentially the most powerful tool that we’ve ever created, and it’s in your pocket right now.

OpenAI’s ad debuts amid growing public discourse about AI’s societal impact. When asked about potential criticism of comparing AI to foundational human innovations like fire and the wheel, Rouch was direct: We fundamentally believe in the transformative power of this technology. It’s core to everything that we do.

More on OpenAI’s Super Bowl ad debut on TheVerge

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