Zed Industries, the Boulder, Colorado-based maker of the open-source code editor Zed, has raised $32 million in a Series B round led by Sequoia Capital, bringing its total funding to more than $42 million. Existing early backers also participated in the financing. Built in Rust by the creators of Atom and Electron, Zed positions itself as a high-performance “multiplayer” editor that supports real-time collaboration among developers. The company says about 150,000 developers use the product and that roughly one in ten Rust programmers rely on it. The new capital will accelerate work on DeltaDB, a version-control system designed to let human programmers and AI agents edit code simultaneously. “We’re building better primitives for collaborative coding so conversations with teammates and agents happen directly in the IDE,” Chief Executive Officer Nathan Sobo said. Sequoia partner Sonya Huang called Zed’s approach “a fundamental shift in how developers will work with AI agents,” adding that the firm expects the technology to underpin future software-development tooling.