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Tessl Secures $125M At Over $500M Valuation To Create AI That Writes And Maintains Code

Many new companies, especially in the tech sector, have tried to create artificial intelligence (AI) that can write software code. Now, a new startup called Tessl is stepping into this space with a goal of addressing the challenges that arise when both humans and AI are involved in coding together.

Tessl is developing a platform that it describes as “AI native.” This means it will be designed specifically to work well with AI technologies. The platform is intended for software developers and their teams, helping them create and manage software more efficiently. On Thursday, Tessl announced that it has opened a waitlist for people interested in trying out its platform when it becomes available.

It’s important to note that Tessl’s product isn’t ready yet; the company plans to launch it in early 2025. However, Tessl has already made headlines by raising a significant amount of money—$125 million—through its initial funding rounds, which include a seed round and a Series A round. This funding was led by a well-known investment firm called Index Ventures, and other investors like Accel, GV (Google Ventures), and Boldstart also contributed. Following this funding, Tessl is now valued at over $500 million.

One reason Tessl is attracting so much attention from top investors, even before it has customers or a finished product, is because of its founder and CEO, Guy Podjarny. He has a strong track record in the tech world, having previously founded a successful cybersecurity company called Snyk, which was valued at $7.4 billion in 2022. Before that, he was the Chief Technology Officer (CTO) at Akamai, a company known for optimizing website performance.

Podjarny shared that the idea for Tessl came from his experiences at Snyk. He noticed that as AI technology becomes more prevalent in software development, it creates new challenges—especially when it comes to ensuring that different pieces of software work well together. He realized that while AI is speeding up coding, it also complicates things because it leads to a lot more code being generated automatically. This increase in complexity can lead to problems such as security vulnerabilities, system failures, and higher costs for organizations.

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The name “Tessl” is inspired by the concept of “tessellation,” which refers to fitting shapes together without gaps or overlaps. Podjarny wants to ensure that different pieces of software and their underlying code fit together neatly, rather than being messy and disorganized.

While he was not specific about the exact types of applications Tessl will support, he mentioned that the startup will begin with simpler software projects. This approach will help them create a manageable system that both AI and human developers can work with effectively.

Here’s how Tessl is expected to work: Developers and their teams, including those who don’t code, can provide instructions to Tessl using plain language or code. Tessl will then generate the necessary code based on those instructions. Teams can test this code in a safe environment (often called a sandbox) where they can identify and fix any issues. Once the code is finalized, Tessl can help maintain it, ensuring that if there are any problems caused by new updates, it can automatically identify and fix them.

Importantly, Tessl is not designed to operate in isolation. Podjarny has mentioned that he is in discussions with other companies that create AI coding tools, suggesting that Tessl will be able to work alongside other platforms. This means that while it will compete with existing AI coding assistants like GitHub’s Copilot and others, it will also be compatible with the tools that teams are already using.

In its initial phase, Tessl plans to support popular programming languages such as Java, JavaScript, and Python, with plans to add more languages in the future.

Investors are excited about Tessl because of its potential to simplify the maintenance of code, which is currently a significant concern in the tech industry. As one investor noted, creating a reliable system for managing code opens up numerous opportunities for the company.

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