AI Coding Startup Magic Raises $320M Led by Former Google CEO Schmidt
Magic secures $320 million in new funding to build AI supercomputers with Google Cloud and advance its ultra-long context coding models.
AI coding startup Magic raises $320 million in a new funding round led by former Google CEO Eric Schmidt, bringing its total funding to $465 million. The round sees participation from prominent investors like Sequoia, Atlassian, Jane Street, and several tech executives. This massive injection of capital follows a $117 million Series B round raised just a few months prior.
Beyond the funding, Magic partners with Google Cloud to build two powerful AI supercomputers named Magic-G4 and Magic-G5. These systems utilize NVIDIA H100 and next-generation Blackwell GPUs, with plans to scale up to tens of thousands of GPUs over time. This hardware collaboration aims to revolutionize how AI models train and perform inference at a massive scale.
Magic develops AI tools that act as automated pair programmers to help engineers code, debug, and plan software changes. The company stands out in a competitive market by training models like LTM-2-mini, which handles up to 100 million tokens of context to process entire codebases. Magic focuses heavily on inference-time computing to help developers reliably generate high-quality pull requests with minimal effort.