According to an exclusive Fortune report, LangChain Inc., a startup providing tools for developers to build artificial intelligence agents, raised $125 million in a Series B funding round. The investment, led by IVP, values the company at $1.25 billion.
The round was joined by Alphabet Inc.’s CapitalG fund, ServiceNow Ventures, Workday Ventures, Cisco Investments, Datadog, and Databricks. LangChain’s core offering is an open-source tool that allows engineers to create AI agents with as few as 10 lines of code by using its prepackaged building blocks. It also features a unified application programming interface, enabling a swap between language model providers like OpenAI and Anthropic PBC without altering existing code.
For more advanced use cases, the company offers LangGraph, an open-source framework designed to support agents that run for extended periods. This tool facilitates automatic recovery from mistakes and allows for the implementation of human supervision in an agent’s workflow. For more complex projects, LangGraph can be paired with Deep Agents, an open-source add-on released by LangChain in July that equips applications with reasoning capabilities.
Deep Agents includes a component for decomposing a complex task into multiple steps, tracking progress, and adjusting its plan when challenges arise. Another feature can spawn dedicated sub-agents for each step to speed up output generation. The tool also adds a file system that expands the amount of data an agent can process beyond its standard context window.
The company monetizes its technology through LangSmith, a paid platform offering a code editor optimized for AI agent development. After creation, engineers can use LangSmith’s built-in testing features to verify an agent meets project requirements. The platform simplifies deployment to a single click and monitors observability metrics such as inference cost, latency, and user interactions. These metrics help developers identify areas for performance improvement.
As of June, LangChain’s annualized recurring revenue (ARR) was between $12 million and $16 million, according to TechCrunch. A company spokesperson told Fortune its ARR has grown since that time. While not yet profitable, LangChain claims to be spending its funding more efficiently than other high-growth, venture-backed startups.
