(Reuters) -AI software developer platform Replit on Wednesday said it has raised $250 million in a funding round that values the San Francisco-based company at $3 billion, as investors continue to back AI startups.

Valuations for code-generation firms or “code-gen” startups have climbed as companies look to use AI to assist — and in some cases replace — human software engineers.

Replit was valued at just over $1 billion in 2023 after it raised $97.4 million. The company said its annualized revenue rose to $150 million from $2.8 million in less than a year.

The latest financing was led by Prysm Capital and includes Google’s AI Futures Fund and Amex Ventures as strategic investors. Existing backers including Andreessen Horowitz — also known as a16z — and Coatue increased their investments

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