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Datadog veterans launch AI coding startup Niteshift on a bet against Big AI lock-in

TechCrunch · Jun 10, 2026, 3:00 PM

Key takeaways

  • AI coding agent startup Niteshift has raised a $7 million seed round led by Greylock’s Jerry Chen.
  • Mehmood, who is CEO, likens it to Datadog s early growth, when the monitoring company won e-commerce customers who refused to build on Amazon Web Services.
  • The AI equivalent, as Mehmood sees it, is already underway.

AI coding agent startup Niteshift has raised a $7 million seed round led by Greylock’s Jerry Chen. That s a modest sum by AI standards, but the startup, founded by two former early Datadog engineers, has attracted some big-name angels like Reid Hoffman, Datadog s Olivier Pomel and Alexis Lê-Quôc, Ankur Goyal of Braintrust, and Misha Laskin of Reflection AI.

Founded by Sajid Mehmood and Conor Branagan, who helped grow Datadog from its early days to a multi-billion valuation, the company has entered the crowded AI coding space with a compelling idea: Why would any company trust its most sensitive assets — code that runs its products — directly to model makers like OpenAI and Anthropic, given that those companies are constantly “killing” startups and businesses by launching competing apps?

Mehmood, who is CEO, likens it to Datadog s early growth, when the monitoring company won e-commerce customers who refused to build on Amazon Web Services. It was a reasonable concern, given that Amazon was simultaneously putting many of those same retail stores out of business in what became known as the retail apocalypse.

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