Summary:
Magic, an AI coding startup, raised $320 million, bringing its total raised to almost $500 million.
This funding was led by Eric Schmidt and includes investments from CapitalG, Atlassian, and other prominent investors.
Magic distinguishes itself with its Long-Term Memory Network (LTM), allowing its models to handle ultra-long context windows, exceeding even Google's Gemini models.
The company is building two supercomputers on Google Cloud, powered by Nvidia GPUs, to train and run its advanced AI models.
Magic aims to build AI that can solve problems more reliably than humans, and sees a massive market opportunity in the growing AI coding tools sector.
Magic: A Generative AI Coding Startup With Big Ambitions
Magic, a startup specializing in AI models for code generation and software development automation, just secured a massive $320 million investment round. This funding, led by ex-Google CEO Eric Schmidt, brings Magic's total raised to nearly half a billion dollars.
This substantial investment places Magic alongside other well-funded AI coding startups like Codeium, Cognition, Poolside, Anysphere, and Augment.
Focus on Long-Term Memory
Magic distinguishes itself with its Long-Term Memory Network (LTM), allowing its models to handle ultra-long context windows. This means the AI can remember and process massive amounts of code, preventing it from losing track of context and making incorrect assumptions. The latest model, LTM-2-mini, boasts a context window of 100 million tokens, equivalent to about 10 million lines of code. This dwarfs the 2 million token capacity of Google's Gemini models.
Building a Supercomputer
To power its advanced AI models, Magic has partnered with Google Cloud to construct two supercomputers:
- Magic-G4: Powered by Nvidia H100 GPUs.
- Magic G5: Utilizing Nvidia's next-generation Blackwell chips.
Magic plans to scale the G5 cluster to tens of thousands of GPUs, reflecting its ambitious goal of creating AI that can tackle problems more effectively than humans.
A Growing Market for AI-Powered Coding
The market for AI coding tools is rapidly expanding, and is projected to reach $27.17 billion by 2032. This growth is driven by developer enthusiasm, with the vast majority adopting AI tools in some form.
Magic's focus on AGI (Artificial General Intelligence) sets them apart from competitors. While their tools aren't yet commercially available, Magic's commitment to innovation and their impressive team of experts point to a promising future.
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