AI Coding Startup Magic Raises $320 Million to Build Developer Tools
San Francisco-based Magic secures $320 million in new funding to expand its AI-driven software development tools. The startup plans to use the capital to build advanced supercomputers on Google Cloud.
Magic, a San Francisco-based AI startup, secures $320 million in funding to advance its mission of automating software development. This latest investment brings the company's total capital to $465 million and attracts notable backers such as former Google CEO Eric Schmidt, Alphabet's CapitalG, Atlassian, and Sequoia.
The company plans to use the new capital to expand its AI-driven coding tools and build supercomputers on Google Cloud. Founded in 2022 by Eric Steinberger and Sebastian De Ro, Magic focuses on developing models that handle code generation, debugging, and project planning.
Magic acts as an automated pair programmer that continuously learns and adapts to the specific context of different coding projects. Although these AI-driven tools are not yet available for sale, they show strong potential to help software engineers write, review, and plan code changes more efficiently.