Why We Raised $5.7M to Launch cto.new Completely for Free

Engine Labs announced a $5.7 million funding round to launch cto.new, described as "the world's first completely free AI software engineering platform." The round was led by Kindred Ventures and PROfounders, with participation from Wonder Ventures, Entrepreneurs First, and Script.

The Problem with Current AI Tools

The post argues that AI coding assistance has become essential for competitive development, yet prohibitively expensive. "Teams using AI code assistants report 20-35% faster development cycles," making these tools nearly mandatory. However, costs are substantial: developers pay "$22,800 to $72,000 annually just for AI coding tools," creating barriers for aspiring founders.

The cto.new Solution

The platform offers unlimited access to major AI models including GPT-5 Codex, Claude Sonnet 4.5, and Gemini Pro without vendor lock-in. Beyond code generation, it includes task planning, code review, and integration with GitHub, Linear, Jira, and Slack—all free.

Core Philosophy

The founders emphasize democratization: "brilliant ideas aren't constrained by subscription budgets." They position the $5.7 million investment as subsidizing compute costs that competitors charge hundreds monthly to access, enabling students and entrepreneurs equal access to professional-grade tools.

Call to Action

Readers are invited to try cto.new and join the Discord community to "build without limits."