Magic vs Thinking Machines Lab

Magic AI Claims Frontier-Level Pretraining for Under $1M

Magic, an AI startup co-founded by Austrians Eric Steinberger and Sebastian De Ro, claims a major breakthrough in pretraining efficiency. Its new recipe reportedly matches DeepSeek V4 Pro's base model quality using 50x less compute, costing about $500,000 on Nvidia GB200 systems, and is over ten times more compute-efficient than leading open-weight models. Scaling to roughly $4 million, Magic says it outperforms all public base models on perplexity evaluations, comparing against DeepSeek V4 Pro, Kimi K2, and Nvidia's Nemotron 3 Ultra, while excluding closed models from Anthropic, Google, and OpenAI. The company has raised over $460 million, with a $320 million round valuing it at $1.5 billion, and partners with Google Cloud for tens of thousands of GB200 chips. Magic has not yet released a model, and all claims are self-reported.

• Magic claims its pretraining recipe matches DeepSeek V4 Pro's quality with 50x less compute, costing ~$0.5M on GB200, and is 10x more efficient than leading open models.
• Scaling the recipe to ~$4M, Magic says it beats all public base models on perplexity evaluations.
• Magic has raised over $460M, with a $320M round valuing it at $1.5B, and partners with Google Cloud for GB200 compute.

Putting Task Expertise into RL Achieves State-of-the-Art Performance on Text-to-SQL

Thinking Machines Lab announced two new updates: a research breakthrough in RL for text-to-SQL and new safety research grants.

Barret Zoph Joins Google as VP of Research

Barret Zoph, co‑founder of AI startup Thinking Machines Lab and a former OpenAI employee, has taken a role as vice president of research at Google. Zoph previously co‑founded Thinking Machines with Mira Murati after leaving OpenAI in October 2024, briefly returned to OpenAI in January 2026 to lead AI enterprise sales, and departed in June 2026 after a five‑month stint. Tech reporting notes Zoph was fired from Thinking Machines earlier this year. Google said it expects Zoph to contribute reinforcement learning and post‑training expertise to its Gemini efforts. The move is one of several high‑profile executive shifts in the AI industry this year.

• Barret Zoph co‑founded Thinking Machines Lab and later rejoined OpenAI.
• Zoph spent five months at OpenAI in 2026 heading AI enterprise sales and left in June 2026.
• Zoph was reported to have been fired from Thinking Machines earlier in 2026.