AI coding startup Magic lands $320M investment from Eric Schmidt and Atlassian

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 partnered 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 plans for expansion, Magic is positioning itself as a significant player in the AI coding landscape.

- Magic raised $320 million, increasing total funding to $465 million.

- The startup focuses on AI models to assist in software development tasks.

- Magic partnered with Google Cloud to build advanced supercomputers.

- The company’s LTM model features a 100 million-token context window.

- Magic aims to target a market projected to reach $27.17 billion by 2032.