Code Metal Raises $125 Million to Rewrite the Defense Industry’s Code With AI

Wired

by Lauren Goode

February 19, 2026

AI-Generated Deep Dive Summary

Code Metal, a Boston-based startup leveraging AI to modernize legacy software for the defense industry, has secured $125 million in Series B funding. This investment highlights the growing demand for AI-driven tools that can translate and verify code across programming languages, addressing critical challenges in the tech sector. Founded in 2023, Code Metal focuses on helping defense contractors and government agencies modernize outdated systems without introducing new bugs. Its platform specializes in translating high-level languages like Python and C++ into lower-level or hardware-specific languages such as Rust and CUDA, ensuring seamless code portability and reliability. The startup’s approach is particularly relevant for the defense industry, where legacy systems often rely on outdated programming languages that are difficult to maintain and update. Code Metal CEO Peter Morales emphasizes the importance of modernization, citing examples like satellite software and essential communications infrastructure, which frequently operate on “old, crufty” code. To mitigate risks during translation, the company uses proprietary technology to generate test harnesses at each step, ensuring customers can verify that converted code functions as intended. While Code Metal’s platform demonstrates potential, the broader industry faces challenges. The rise of AI-generated code has sparked debates about quality and reliability. Investors like Yan-David Erlich of B Capital acknowledge these risks but believe the benefits of modernization outweigh the costs. As more startups enter this space, the race to perfect AI-driven code tools continues, with significant implications for tech innovation. For readers interested in tech, Code Metal’s work underscores the transformative potential of AI in rewriting and optimizing existing software—a trend that could revolutionize industries beyond defense. The startup’s success signals a shift toward efficiency and reliability in coding processes, offering solutions to long-standing challenges in legacy systems while addressing the growing demand for modernization across critical sectors.

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Originally published on Wired on 2/19/2026