Software development is undergoing a transformative shift as developers increasingly embrace AI-powered tools. According to a recent survey on the Q&A site Stack Overflow, 77% of developers express a favorable attitude toward incorporating AI into their workflows, citing enhanced productivity and accelerated learning as key benefits. Notably, GitHub Copilot and Amazon CodeWhisperer are gaining traction among developers, but startups like Laredo Labs are carving out their own space in this burgeoning sector.

Laredo Labs, founded in 2022 by Mark Gabel and Daniel Lord, is spearheading the development of an innovative AI-driven platform for code generation. Drawing on an AI model trained on data from approximately a hundred million software projects, Laredo distinguishes itself by generating code based on high-level natural language commands. This includes writing, editing, and deleting code to streamline development tasks while meticulously documenting progress. The co-founders bring valuable expertise to the table, with Gabel having served as the chief scientist at Viv Labs (acquired by Samsung in 2016) and Lord as a platform engineer at Siri before Apple's acquisition of the startup.

Currently in private preview, Laredo's platform boasts the ability to complete "repository-level" tasks, responding to instructions or text extracted verbatim from an issue tracker. Gabel describes Laredo as a "full stack" machine learning company, ushering in what he calls an "ambitious new AI-driven developer experience." However, the legal landscape surrounding generative coding tools, including potential copyright issues, poses challenges. Laredo Labs faces questions regarding the training of its models on copyrighted code and its indemnification policy in the event of intellectual property disputes.

Despite legal considerations, Laredo Labs enters a competitive field with confidence. Gabel believes the software engineering space offers substantial room for diverse participants and asserts that Laredo occupies a unique niche. While still in the pre-revenue stage, Laredo Labs has secured $8.5 million in a seed round co-led by Radical Ventures and Horizons Ventures. The startup plans to utilize a portion of the funding to expand its team from eight to ten members by the end of the year, signaling a promising trajectory in the evolving landscape of AI-driven software development.