AI Coding Startup Magic Secures $320M From Eric Schmidt, CapitalG
Generative AI coding startup Magic raises $320 million in a new funding round led by former Google CEO Eric Schmidt and Alphabet's CapitalG. The company also partners with Google Cloud to build massive next-generation supercomputers for training its models.
Generative AI startup Magic raises $320 million in a new funding round, drawing investments from former Google CEO Eric Schmidt, Alphabet's CapitalG, Atlassian, and Sequoia. This massive cash injection brings the company's total raised to $465 million and places Magic among the best-funded AI coding startups in the industry. The round easily surpasses the $200 million the startup reportedly sought in July.
Beyond the funding, Magic announces a major partnership with Google Cloud to construct two powerful AI supercomputers. The Magic-G4 cluster relies on Nvidia's H100 GPUs, while the upcoming Magic-G5 system utilizes Nvidia's next-generation Blackwell chips. Together, these clusters deliver an impressive 160 exaflops of computing power to train and run Magic's code-generating models.
Magic focuses on building AI models that automate various software development tasks to accelerate the coding process. Co-founded in 2022 by Eric Steinberger and Sebastian De Ro, the company now possesses the financial backing and hardware infrastructure needed to compete aggressively in the crowded AI coding market.