Generative AI coding startup Magic lands investment from Eric Schmidt
Magic, a generative AI coding startup, raised $320 million, totaling $465 million in funding. It develops AI tools for software development and partners with Google Cloud for advanced supercomputers.
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Magic, a generative AI coding startup, has successfully raised $320 million in a funding round led by notable investors including former Google CEO Eric Schmidt and Atlassian. This investment increases Magic's total funding to approximately $465 million, positioning it among the well-capitalized AI coding startups. The company aims to develop AI models that assist in software development tasks, functioning as automated pair programmers. Magic has also announced a partnership with Google Cloud to create two advanced supercomputers, leveraging Nvidia GPUs to enhance the efficiency of its AI models. The startup's innovative approach includes a model architecture called Long-term Memory Network (LTM), which boasts an unprecedented context window of 100 million tokens, allowing it to handle extensive codebases effectively. Despite currently having no revenue, Magic is targeting a market projected to reach $27.17 billion by 2032. The company is also focused on broader ambitions, including the pursuit of artificial general intelligence (AGI). With a small team and significant backing, Magic is poised to make a substantial impact in the AI coding landscape.
- Magic raised $320 million from investors including Eric Schmidt and Atlassian.
- The startup's total funding now stands at approximately $465 million.
- Magic is developing AI tools to assist in software development tasks.
- The company has partnered with Google Cloud to build advanced supercomputers.
- Magic's model features a context window of 100 million tokens, the largest in the commercial sector.
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In the first half of 2024, global AI startups received over $35.5 billion in investments. U.S. companies secured two billion-dollar rounds and 64% of mega-rounds, with notable funding going to various AI startups.
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