AI startup, Magic, has recently secured a massive $320 million in funding from various investors, including former Google CEO Eric Schmidt. The company specializes in building models that can generate code and automate various software development tasks, aiming to revolutionize the coding process.
This significant injection of funds will bring Magic’s total raised capital to an impressive $465 million, propelling them into the league of highly-funded AI coding startups such as Codeium, Cognition, Poolside, Anysphere, and Augment. It is worth noting that Eric Schmidt is also an investor in Augment, further underscoring his belief in the potential of AI-driven coding solutions.
While the exact valuation of Magic following this funding round remains undisclosed, it is expected to surpass the $500 million valuation it received in February. Back in July, Reuters reported that the startup was aiming to raise over $200 million with a valuation target of $1.5 billion. These latest figures suggest that Magic has exceeded its funding expectations.
In addition to the funding news, Magic has also announced a strategic partnership with Google Cloud. This collaboration will see the development of two “supercomputers” on the Google Cloud Platform. The first, named Magic-G4, will be powered by Nvidia H100 GPUs, while the second, Magic G5, will utilize Nvidia’s cutting-edge Blackwell chips.
By leveraging the capabilities of powerful GPUs and advanced chip technology, Magic aims to streamline and optimize the coding process, offering developers advanced tools and automation to enhance their productivity. With this new round of funding and its collaboration with Google Cloud, Magic is well-positioned to drive innovation in the field of AI coding and transform the software development landscape.