Magic AI Raises $117 Million to Develop AI Software Engineer

San Francisco-based startup Magic AI has secured a remarkable $117 million in Series B funding. The infusion of capital is earmarked to propel the development of an advanced AI system tailored to revolutionize software development.

Led by Nat Friedman and Daniel Gross’s NFDG Ventures, with additional backing from CapitalG and Elad Gil, the funding round marks a substantial vote of confidence in Magic's innovative approach. This latest investment brings Magic’s total funding to date to over $145 million, signifying a robust endorsement of the startup's vision and potential.

Founded in 2022 by Eric Steinberger and Sebastian De Ro, Magic AI is pioneering a novel niche in the tech landscape. Rather than simply serving as a "copilot" tool, the startup is focused on crafting an AI software engineer capable of seamlessly assisting with intricate coding tasks. This ambitious endeavor aims to create a digital collaborator that functions more akin to a coworker, augmenting human capabilities in software development.

Beyond its immediate practical applications, Magic AI harbors grand ambitions for its intelligent code generation tools. The founders envision their technology as a steppingstone towards broader artificial general intelligence (AGI) systems. These AGI systems, aligned with human values, could potentially tackle some of humanity's most pressing challenges, accelerating progress on a global scale.

At the core of Magic's technical strategy lies its adept handling of exceptionally large context windows. By leveraging its Long-term Memory Network (LTM Net) architecture, Magic AI enables its model to operate with a vast 5 million context window. This unparalleled context comprehension capability empowers the AI to navigate entire code repositories and dependency trees with remarkable precision and insight.

Despite operating predominantly in stealth mode, Magic AI has already made significant strides in its development journey. The startup boasts thousands of GPUs deployed toward training its next-generation models, underscoring its commitment to pushing the boundaries of AI innovation.

With fresh funding in hand, Magic AI is now poised to ramp up talent recruitment and retention efforts. The startup is actively seeking individuals who share its ethos of integrity and innovation, fostering a culture rooted in passion and collaboration.

Amid a fiercely competitive landscape, Magic AI stands out as a beacon of transformative potential. Anchored by towering investor confidence and fueled by ambitious aspirations, the startup is well-positioned to chart new frontiers in AI-driven software development. With its focus on extreme model scale and novel neural architectures, Magic AI continues to redefine the contours of possibility in the tech industry.