Magic, an AI startup developing models to generate code and automate a range of software development tasks, says that it’s raised a large tranch

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

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2024-08-29 18:00:07

Magic, an AI startup developing models to generate code and automate a range of software development tasks, says that it’s raised a large tranche of cash from investors including ex-Google CEO Eric Schmidt.

In a blog post on Thursday, Magic said that it closed a $320 million fundraising round with contributions from Schmidt, Jane Street, Sequoia, Atlassian, Nat Friedman & Daniel Gross, Elad Gil, CapitalG and others. The funding brings the company’s total raised to nearly half a billion dollars ($465 million), catapulting it into a cohort of better-funding generative coding startups that includes Anysphere, Codeium and Augment. (Interestingly, Schmidt’s backing Augment, too.)

Magic also announced a partnership with Google Cloud to build two “supercomputers” on Google Cloud Platform. One — Magic-G4 — will be made up of Nvidia H100 GPUs, while the other — Magic G5 — will comprise Nvidia’s next-gen Blackwell chips.

“We are excited to partner with Google and Nvidia to build our next-gen AI supercomputer on Google Cloud,” Magic co-founder and CEO Eric Steinberg said in a statement. “Nvidia’s [Blackwell] system will greatly improve inference and training efficiency for our models, and Google Cloud offers us the fastest timeline to scale, and a rich ecosystem of cloud services.”