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Graphite’s $52M Bet on AI Code Review—Is This the Future of Development?

Writer: Anika DobrevAnika Dobrev
The Evolution of AI-Powered Code Review: Graphite’s Rise in a Competitive Landscape
The Growing Influence of AI in Software Development
Artificial intelligence (AI) has rapidly transformed the software development landscape, revolutionizing how engineers write, review, and optimize code. AI-powered coding assistants have become an integral part of modern software engineering, with GitHub’s latest survey revealing that the vast majority of developers now rely on AI-assisted coding tools.

Y Combinator partner Jared Friedman highlighted this shift by stating:

"A quarter of YC’s W25 startup batch have 95% of their codebases generated by AI."

This represents a seismic shift in coding practices, where AI is no longer just an assistant but a primary contributor to software development. The emergence of sophisticated AI-powered code review platforms is further accelerating this trend, ensuring that AI-generated code is robust, secure, and optimized.

Among the notable players in this space is Graphite, an AI-powered code review platform that has quickly gained traction among startups and enterprises alike.

Graphite’s Evolution: From Internal Tool to Industry Leader
Origins and Growth
Graphite was founded in 2020 by former engineers from Meta, Airbnb, and Google under the corporate name Screenplay Studios Inc.. The platform initially functioned as an internal tool to streamline code review processes but soon evolved into a full-fledged commercial solution.

Merrill Lutsky, co-founder of Graphite, explained the motivation behind its development:

"Graphite started as an internal tool we built to solve our own pain around code review. We shared what we built with a few ex-Meta engineers, who quickly shared it more broadly, and soon the demand for Graphite became too loud to ignore."

This organic growth was fueled by word-of-mouth adoption within elite engineering circles, particularly among ex-Meta and ex-Google engineers accustomed to sophisticated internal code review systems.

Graphite’s AI-Powered Code Review: Features and Capabilities
Introducing Diamond: AI-Powered Code Review Assistant
At the core of Graphite’s offering is Diamond, a generative AI-powered code review assistant designed to analyze, optimize, and improve code quality in real-time.

Key Features of Diamond
Feature	Functionality	Impact
Automated Code Review	Uses AI models from OpenAI and Anthropic to detect logic errors and security vulnerabilities.	Reduces human workload and improves code quality.
Pull Request Summarization	Generates AI-driven summaries for code changes.	Speeds up code review processes.
Actionable Code Suggestions	Converts reviewer comments into executable code fixes.	Minimizes manual corrections, boosting efficiency.
Self-Healing CI	Detects and fixes failing Continuous Integration (CI) pipelines.	Reduces downtime and deployment failures.
Stacked PRs & Merge Queue	Enables developers to submit smaller, more manageable pull requests.	Mirrors Google and Meta’s workflow for improved productivity.
Diamond’s ability to self-heal failing CI pipelines, automatically summarize pull requests, and provide actionable feedback in seconds sets it apart from traditional code review tools.

Graphite’s Security-First Approach
Security is a critical concern in AI-assisted coding. Graphite addresses this by:

Allowing enterprise teams to set security policies for AI-generated code.
Preventing accidental exposure of sensitive data through customizable privacy filters.
Integrating with industry-leading security frameworks to ensure compliance.
Rama Sekhar of Menlo Ventures emphasized this unique value proposition:

"Graphite’s Diamond sets a new standard for code review, ensuring teams can trust and scale AI-generated code."

Graphite’s $52 Million Series B Funding and Market Expansion
Breakdown of Investment Rounds
On March 18, 2025, Graphite announced the successful closing of its $52 million Series B funding round, led by Accel and supported by Menlo Ventures, Shopify Ventures, Figma Ventures, and Andreessen Horowitz.

Funding Round	Amount Raised	Key Investors
Seed	$10M	Andreessen Horowitz, The General Partnership
Series A	$29M	Andreessen Horowitz, The General Partnership
Series B	$52M	Accel, Menlo Ventures, Shopify Ventures, Figma Ventures
This brings Graphite’s total funding to approximately $91 million. The funds will be used to:

Expand the engineering team at its New York headquarters.
Enhance AI capabilities within Diamond.
Launch new enterprise-focused features for large-scale deployments.
Competing in a Crowded AI Development Market
Graphite faces intense competition from established players and emerging startups.

Competitor	Key Strengths
GitHub Copilot	Backed by Microsoft and OpenAI, offers real-time code completions.
Anysphere (Cursor)	YC-backed startup focusing on AI-driven software engineering.
Codeium, Poolside, Augment, Magic	AI-driven coding platforms with niche specializations.
Google’s Code Assist	Google’s in-house AI tool for developers.
Anthropic’s Claude-powered programming tools	Advanced AI coding assistants.
To stay ahead, Graphite is emphasizing:

Stack-aware AI-driven workflows to mimic Google and Meta’s best practices.
A seamless developer experience with its free-tier expansion.
Enterprise-grade security features, giving it an edge in regulated industries.
The Future of AI in Code Review
Will AI Replace Human Code Reviewers?
Despite advancements in AI-powered tools, human reviewers remain indispensable in software development.

Aspect	AI Capability	Human Expertise Needed?
Bug Detection	Can catch syntax and logic errors.	Yes, for context-sensitive issues.
Security Audits	Detects common vulnerabilities.	Yes, for in-depth threat analysis.
Code Optimization	Suggests refactoring.	Yes, for architecture decisions.
Compliance & Ethics	Can flag license violations.	Yes, for legal and ethical reviews.
As AI matures, its role will shift from a simple assistant to a collaborative partner, allowing developers to focus on higher-level problem-solving while AI handles repetitive tasks.

Final Thoughts: AI’s Role in the Future of Software Engineering
The emergence of AI-powered code review platforms like Graphite marks a transformational moment in software engineering. By automating mundane tasks, reducing errors, and enhancing security, AI is making development faster, more efficient, and more scalable.

Key Takeaways:
Graphite’s AI reviewer, Diamond, is setting new industry standards.
$52M in Series B funding positions Graphite as a major player.
Adoption by top firms like Shopify, Snowflake, and Figma signals market confidence.
AI won’t replace human reviewers but will act as a powerful augmentation tool.
Read More from 1950.ai
For cutting-edge insights on AI, emerging technologies, and cybersecurity, explore expert analyses from Dr. Shahid Masood and the team at 1950.ai. Stay ahead of global tech trends with in-depth research and industry perspectives from leading analysts.

Artificial intelligence (AI) has rapidly transformed the software development landscape, revolutionizing how engineers write, review, and optimize code. AI-powered coding assistants have become an integral part of modern software engineering, with GitHub’s latest survey revealing that the vast majority of developers now rely on AI-assisted coding tools.

Y Combinator partner Jared Friedman highlighted this shift by stating:

"A quarter of YC’s W25 startup batch have 95% of their codebases generated by AI."

This represents a seismic shift in coding practices, where AI is no longer just an assistant but a primary contributor to software development. The emergence of sophisticated AI-powered code review platforms is further accelerating this trend, ensuring that AI-generated code is robust, secure, and optimized.


Among the notable players in this space is Graphite, an AI-powered code review platform that has quickly gained traction among startups and enterprises alike.


Graphite’s Evolution: From Internal Tool to Industry Leader

Origins and Growth

Graphite was founded in 2020 by former engineers from Meta, Airbnb, and Google under the corporate name Screenplay Studios Inc.. The platform initially functioned as an internal tool to streamline code review processes but soon evolved into a full-fledged commercial solution.

Merrill Lutsky, co-founder of Graphite, explained the motivation behind its development:

"Graphite started as an internal tool we built to solve our own pain around code review. We shared what we built with a few ex-Meta engineers, who quickly shared it more broadly, and soon the demand for Graphite became too loud to ignore."

This organic growth was fueled by word-of-mouth adoption within elite engineering circles, particularly among ex-Meta and ex-Google engineers accustomed to sophisticated internal code review systems.


Graphite’s AI-Powered Code Review: Features and Capabilities

Introducing Diamond: AI-Powered Code Review Assistant

At the core of Graphite’s offering is Diamond, a generative AI-powered code review assistant designed to analyze, optimize, and improve code quality in real-time.


Key Features of Diamond

Feature

Functionality

Impact

Automated Code Review

Uses AI models from OpenAI and Anthropic to detect logic errors and security vulnerabilities.

Reduces human workload and improves code quality.

Pull Request Summarization

Generates AI-driven summaries for code changes.

Speeds up code review processes.

Actionable Code Suggestions

Converts reviewer comments into executable code fixes.

Minimizes manual corrections, boosting efficiency.

Self-Healing CI

Detects and fixes failing Continuous Integration (CI) pipelines.

Reduces downtime and deployment failures.

Stacked PRs & Merge Queue

Enables developers to submit smaller, more manageable pull requests.

Mirrors Google and Meta’s workflow for improved productivity.

Diamond’s ability to self-heal failing CI pipelines, automatically summarize pull requests, and provide actionable feedback in seconds sets it apart from traditional code review tools.


Graphite’s Security-First Approach

Security is a critical concern in AI-assisted coding. Graphite addresses this by:

  • Allowing enterprise teams to set security policies for AI-generated code.

  • Preventing accidental exposure of sensitive data through customizable privacy filters.

  • Integrating with industry-leading security frameworks to ensure compliance.


Rama Sekhar of Menlo Ventures emphasized this unique value proposition:

"Graphite’s Diamond sets a new standard for code review, ensuring teams can trust and scale AI-generated code."

Graphite’s $52 Million Series B Funding and Market Expansion

Breakdown of Investment Rounds

On March 18, 2025, Graphite announced the successful closing of its $52 million Series B funding round, led by Accel and supported by Menlo Ventures, Shopify Ventures, Figma Ventures, and Andreessen Horowitz.

Funding Round

Amount Raised

Key Investors

Seed

$10M

Andreessen Horowitz, The General Partnership

Series A

$29M

Andreessen Horowitz, The General Partnership

Series B

$52M

Accel, Menlo Ventures, Shopify Ventures, Figma Ventures

This brings Graphite’s total funding to approximately $91 million. The funds will be used to:

  1. Expand the engineering team at its New York headquarters.

  2. Enhance AI capabilities within Diamond.

  3. Launch new enterprise-focused features for large-scale deployments.


Competing in a Crowded AI Development Market

Graphite faces intense competition from established players and emerging startups.

Competitor

Key Strengths

GitHub Copilot

Backed by Microsoft and OpenAI, offers real-time code completions.

Anysphere (Cursor)

YC-backed startup focusing on AI-driven software engineering.

Codeium, Poolside, Augment, Magic

AI-driven coding platforms with niche specializations.

Google’s Code Assist

Google’s in-house AI tool for developers.

Anthropic’s Claude-powered programming tools

Advanced AI coding assistants.

To stay ahead, Graphite is emphasizing:

  • Stack-aware AI-driven workflows to mimic Google and Meta’s best practices.

  • A seamless developer experience with its free-tier expansion.

  • Enterprise-grade security features, giving it an edge in regulated industries.


The Evolution of AI-Powered Code Review: Graphite’s Rise in a Competitive Landscape
The Growing Influence of AI in Software Development
Artificial intelligence (AI) has rapidly transformed the software development landscape, revolutionizing how engineers write, review, and optimize code. AI-powered coding assistants have become an integral part of modern software engineering, with GitHub’s latest survey revealing that the vast majority of developers now rely on AI-assisted coding tools.

Y Combinator partner Jared Friedman highlighted this shift by stating:

"A quarter of YC’s W25 startup batch have 95% of their codebases generated by AI."

This represents a seismic shift in coding practices, where AI is no longer just an assistant but a primary contributor to software development. The emergence of sophisticated AI-powered code review platforms is further accelerating this trend, ensuring that AI-generated code is robust, secure, and optimized.

Among the notable players in this space is Graphite, an AI-powered code review platform that has quickly gained traction among startups and enterprises alike.

Graphite’s Evolution: From Internal Tool to Industry Leader
Origins and Growth
Graphite was founded in 2020 by former engineers from Meta, Airbnb, and Google under the corporate name Screenplay Studios Inc.. The platform initially functioned as an internal tool to streamline code review processes but soon evolved into a full-fledged commercial solution.

Merrill Lutsky, co-founder of Graphite, explained the motivation behind its development:

"Graphite started as an internal tool we built to solve our own pain around code review. We shared what we built with a few ex-Meta engineers, who quickly shared it more broadly, and soon the demand for Graphite became too loud to ignore."

This organic growth was fueled by word-of-mouth adoption within elite engineering circles, particularly among ex-Meta and ex-Google engineers accustomed to sophisticated internal code review systems.

Graphite’s AI-Powered Code Review: Features and Capabilities
Introducing Diamond: AI-Powered Code Review Assistant
At the core of Graphite’s offering is Diamond, a generative AI-powered code review assistant designed to analyze, optimize, and improve code quality in real-time.

Key Features of Diamond
Feature	Functionality	Impact
Automated Code Review	Uses AI models from OpenAI and Anthropic to detect logic errors and security vulnerabilities.	Reduces human workload and improves code quality.
Pull Request Summarization	Generates AI-driven summaries for code changes.	Speeds up code review processes.
Actionable Code Suggestions	Converts reviewer comments into executable code fixes.	Minimizes manual corrections, boosting efficiency.
Self-Healing CI	Detects and fixes failing Continuous Integration (CI) pipelines.	Reduces downtime and deployment failures.
Stacked PRs & Merge Queue	Enables developers to submit smaller, more manageable pull requests.	Mirrors Google and Meta’s workflow for improved productivity.
Diamond’s ability to self-heal failing CI pipelines, automatically summarize pull requests, and provide actionable feedback in seconds sets it apart from traditional code review tools.

Graphite’s Security-First Approach
Security is a critical concern in AI-assisted coding. Graphite addresses this by:

Allowing enterprise teams to set security policies for AI-generated code.
Preventing accidental exposure of sensitive data through customizable privacy filters.
Integrating with industry-leading security frameworks to ensure compliance.
Rama Sekhar of Menlo Ventures emphasized this unique value proposition:

"Graphite’s Diamond sets a new standard for code review, ensuring teams can trust and scale AI-generated code."

Graphite’s $52 Million Series B Funding and Market Expansion
Breakdown of Investment Rounds
On March 18, 2025, Graphite announced the successful closing of its $52 million Series B funding round, led by Accel and supported by Menlo Ventures, Shopify Ventures, Figma Ventures, and Andreessen Horowitz.

Funding Round	Amount Raised	Key Investors
Seed	$10M	Andreessen Horowitz, The General Partnership
Series A	$29M	Andreessen Horowitz, The General Partnership
Series B	$52M	Accel, Menlo Ventures, Shopify Ventures, Figma Ventures
This brings Graphite’s total funding to approximately $91 million. The funds will be used to:

Expand the engineering team at its New York headquarters.
Enhance AI capabilities within Diamond.
Launch new enterprise-focused features for large-scale deployments.
Competing in a Crowded AI Development Market
Graphite faces intense competition from established players and emerging startups.

Competitor	Key Strengths
GitHub Copilot	Backed by Microsoft and OpenAI, offers real-time code completions.
Anysphere (Cursor)	YC-backed startup focusing on AI-driven software engineering.
Codeium, Poolside, Augment, Magic	AI-driven coding platforms with niche specializations.
Google’s Code Assist	Google’s in-house AI tool for developers.
Anthropic’s Claude-powered programming tools	Advanced AI coding assistants.
To stay ahead, Graphite is emphasizing:

Stack-aware AI-driven workflows to mimic Google and Meta’s best practices.
A seamless developer experience with its free-tier expansion.
Enterprise-grade security features, giving it an edge in regulated industries.
The Future of AI in Code Review
Will AI Replace Human Code Reviewers?
Despite advancements in AI-powered tools, human reviewers remain indispensable in software development.

Aspect	AI Capability	Human Expertise Needed?
Bug Detection	Can catch syntax and logic errors.	Yes, for context-sensitive issues.
Security Audits	Detects common vulnerabilities.	Yes, for in-depth threat analysis.
Code Optimization	Suggests refactoring.	Yes, for architecture decisions.
Compliance & Ethics	Can flag license violations.	Yes, for legal and ethical reviews.
As AI matures, its role will shift from a simple assistant to a collaborative partner, allowing developers to focus on higher-level problem-solving while AI handles repetitive tasks.

Final Thoughts: AI’s Role in the Future of Software Engineering
The emergence of AI-powered code review platforms like Graphite marks a transformational moment in software engineering. By automating mundane tasks, reducing errors, and enhancing security, AI is making development faster, more efficient, and more scalable.

Key Takeaways:
Graphite’s AI reviewer, Diamond, is setting new industry standards.
$52M in Series B funding positions Graphite as a major player.
Adoption by top firms like Shopify, Snowflake, and Figma signals market confidence.
AI won’t replace human reviewers but will act as a powerful augmentation tool.
Read More from 1950.ai
For cutting-edge insights on AI, emerging technologies, and cybersecurity, explore expert analyses from Dr. Shahid Masood and the team at 1950.ai. Stay ahead of global tech trends with in-depth research and industry perspectives from leading analysts.

The Future of AI in Code Review

Will AI Replace Human Code Reviewers?

Despite advancements in AI-powered tools, human reviewers remain indispensable in software development.

Aspect

AI Capability

Human Expertise Needed?

Bug Detection

Can catch syntax and logic errors.

Yes, for context-sensitive issues.

Security Audits

Detects common vulnerabilities.

Yes, for in-depth threat analysis.

Code Optimization

Suggests refactoring.

Yes, for architecture decisions.

Compliance & Ethics

Can flag license violations.

Yes, for legal and ethical reviews.

As AI matures, its role will shift from a simple assistant to a collaborative partner, allowing developers to focus on higher-level problem-solving while AI handles repetitive tasks.


Final Thoughts: AI’s Role in the Future of Software Engineering

The emergence of AI-powered code review platforms like Graphite marks a transformational moment in software engineering. By automating mundane tasks, reducing errors, and enhancing security, AI is making development faster, more efficient, and more scalable.


Key Takeaways:

  • Graphite’s AI reviewer, Diamond, is setting new industry standards.

  • $52M in Series B funding positions Graphite as a major player.

  • Adoption by top firms like Shopify, Snowflake, and Figma signals market confidence.

  • AI won’t replace human reviewers but will act as a powerful augmentation tool.


For cutting-edge insights on AI, emerging technologies, and cybersecurity, explore expert analyses from Dr. Shahid Masood and the team at 1950.ai. Stay ahead of global tech trends with in-depth research and industry perspectives from leading analysts.

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