LangChain, a startup specializing in AI infrastructure and tools for developing and monitoring applications powered by large language models (LLMs), is reportedly in the process of securing a new funding round that could value the company at around $1 billion. This effort is being led by investment firm IVP, according to three individuals familiar with the matter.
Founded by Harrison Chase, an engineer previously at Robust Intelligence, LangChain originated as an open-source project in late 2022. Following a surge of enthusiasm from developers, Chase pivoted the project into a fully-fledged startup, successfully raising $10 million in a seed round from Benchmark in April 2023. Just a week later, the company secured an additional $25 million in a Series A funding led by Sequoia, which reportedly valued LangChain at $200 million.
LangChain quickly became a favored player in the burgeoning AI landscape. At its inception, LLMs struggled with accessing real-time information and performing vital tasks such as web searches, API calls, and database interactions. LangChain’s open-source framework addressed these shortcomings, allowing users to build more advanced applications on LLM models. The project garnered remarkable traction on GitHub, amassing 111,000 stars and over 18,000 forks.
Since then, the LLM environment has grown considerably, with new competitors like LlamaIndex, Haystack, and AutoGPT now providing similar functionalities. Additionally, major LLM providers such as OpenAI, Anthropic, and Google have adapted their APIs to include features that LangChain initially offered, which distinguished its technology.
In response to this competitive landscape, LangChain has expanded its product lineup, introducing LangSmith—a distinct, closed-source tool designed for observability, evaluation, and monitoring of LLM applications, particularly for agents. This offering has gained significant traction, according to multiple sources.
Since LangSmith’s launch last year, the company has reported annual recurring revenue (ARR) ranging between $12 million and $16 million, as per four sources who spoke to TechCrunch. Developers can start using LangSmith at no cost, with options to upgrade to a $39 monthly plan for small team collaboration features. Custom plans for larger organizations are also available through the company’s website.
LangSmith’s clientele includes notable companies like Klarna, Rippling, and Replit. While it currently leads in the operations space for LLMs, it faces competition from smaller open-source projects such as Langfuse and Helicone. IVP chose not to comment on this report.
