All Hands AI Secures $5M to Advance Open-Source Developer Tool, OpenHands

Nabarun Chakraborty & Arathy Augusthy·Aug 2, 2026·1 min read

All Hands AI raised $5 million, led by Menlo Ventures, to further develop their AI tool OpenHands, an open-source alternative to Cognition Labs’ Devin.
OpenHands has garnered over 30,000 stars on GitHub and has more than 150 contributors.

All Hands AI, the creator of the open-source alternative to Cognition Labs’ Devin, has secured $5 million in funding to advance its software development agents. Menlo Ventures led the investment round, joined by other prominent backers.

OpenHands focuses on software development tasks

The project, now renamed OpenHands, aims to become a leading AI tool for developers, offering support for bug fixing, test writing, and large-scale codebase improvements.

OpenHands is designed to function as a proactive AI pair programmer, assisting developers with routine tasks like test writing and recognizing code changes.

Funding to improve OpenHands’ user experience and accuracy

The funding will enhance OpenHands’ user experience, improve agent accuracy, and expand its applicability to large enterprise systems.

The project has already gained traction, amassing over 30,000 stars on GitHub and growing to more than 150 contributors.

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All Hands AI’s founders

Xingyao Wang, co-founder of All Hands, announced the funding while sharing his decision to pause his PhD studies at the University of Illinois Urbana-Champaign to focus on the company full-time.

“Let’s push open-source agents forward together, in the open!” Wang emphasized.

Wang’s co-founder, Graham Neubig, Chief Scientist and associate professor at Carnegie Mellon, brings extensive expertise in natural language processing and agent development to the team.

OpenHands is designed to function as a proactive AI pair programmer, assisting developers with routine tasks like test writing and recognizing code changes. The company is committed to open-source development, aiming to keep powerful AI tools accessible to everyone.

This new investment will help All Hands solidify its position in AI development while continuing to make open-source tools more powerful and user-friendly.