Magic secures $320M funding from Eric Schmidt and Atlassian

Magic, a generative AI coding startup founded in 2022 by Eric Steinberger and Sebastian De Ro, has successfully raised $320 million in a funding round led by ex-Google CEO Eric Schmidt. This investment increases the total funding for Magic to approximately $465 million, positioning it among the top-funded AI coding startups alongside others like Codeium and Cognition. The company aims to develop AI-driven tools that assist software engineers in various coding tasks, operating similarly to an automated pair programmer. A significant aspect of Magic's innovation is its Long-term Memory Network (LTM), which features ultra-long context windows. This architecture allows the AI models to retain and utilize a vast amount of input data, enhancing their ability to generate relevant code without losing track of context. The latest model, LTM-2-mini, boasts a 100 million-token context window, enabling it to autonomously implement features like a password strength meter and a custom UI framework calculator. In addition to the funding, Magic has announced a partnership with Google Cloud to develop two supercomputers on the Google Cloud Platform. This collaboration aims to leverage Nvidia's advanced systems to improve the efficiency of training and inference for Magic's AI models. The partnership is expected to accelerate the scaling of Magic's technology and enhance its capabilities in the competitive AI landscape. The funding and partnerships signify a strong vote of confidence in Magic's potential to revolutionize software development through AI. As the company continues to innovate, it aims to pave the way toward achieving artificial general intelligence (AGI), which could outperform human problem-solving abilities in various domains.