Zed Raises $32 Million in Series B to Build Next Gen Operation-Based Version Control, Unveils DeltaDB

Zed, a code editor designed for high-performance collaboration with humans and AI, led by creators of GitHub's Atom text editor, including Nathan Sobo, Antonio Scandurra, Max Brunsfeld, and others, has raised $32 million in Series B led by Sequoia Capital with participation from existing investors, including Redpoint.  

Zed is building an operation-based version control that tracks code changes at the edit level—enabling seamless collaboration with both teammates and AI agents directly within the editor.

Modern software development is a continuous conversation—with yourself, teammates, and AI. But current tools isolate code from these discussions. Git tracks commits, not the ongoing context in between. Conversations often happen outside the code, leading to lost insights and stale links. Snapshot-based workflows break down with AI, which requires rapid, iterative feedback. Forcing every exchange through commits is slow and unnatural—like trying to chat through a fax machine. Zed is building a system that captures every edit and discussion, preserving the full evolution of code. Collaboration becomes a living, continuous dialogue—not a series of disconnected snapshots.

Zed is building DeltaDB, a new version control system that tracks every code operation—not just commits—using CRDTs for real-time sync and fine-grained, character-level permalinks. It works with Git but goes beyond it, enabling persistent links to code locations that survive any transformation. The goal is to turn codebases into living histories where every edit, assumption, and discussion—human or AI—is preserved and always linked to the relevant code. DeltaDB makes collaboration fluid across time scales, from real-time chats to long-term context for AI agents and teammates.

Zed and DeltaDB will both be open-source, with optional paid services.