Observed Signal · Aug 30, 2024 · Funding · Source: Trending Topics · Impact: 3/5 · Sentiment: Positive
Magic Raises $320M, Becomes Best-Funded AI Coding Startup
Austrian-founded, San Francisco-based AI startup Magic has raised $320 million in a new funding round, bringing its total funding to $465 million and making it the best-funded AI coding startup, ahead of rivals such as Cognition and Augment. The company, founded in 2022 by Eric Steinberger and Sebastian De Ro, employs 23 people and operates 8,000 Nvidia H100 GPUs. Magic plans to buy tens of thousands of Nvidia GB200 chips, priced at around $70,000 each, and has partnered with Google Cloud and Nvidia to build two supercomputers, Magic-G4 and Magic-G5. The company is advertising San Francisco engineering salaries of up to $900,000 per year. Magic's valuation is listed at over $1 billion. Most of the capital will go toward GPU acquisition and AI model training, and further funding rounds are likely.
The $320M round makes Magic the best-funded AI coding startup, reflecting massive capital deployment into AI infrastructure such as Nvidia GPUs and supercomputers; while not directly AdTech, it signals the intensifying AI technology race relevant to AI-powered business tools.
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Key Takeaways & Evidence Grounding
- Magic raised $320 million in a new funding round, bringing its total raised capital to $465 million.
- Magic is now the best-funded AI coding startup, ahead of Cognition, Augment, Codeium, and Replit.
- Magic operates 8,000 Nvidia H100 GPUs and plans to purchase tens of thousands of Nvidia GB200 chips.
- Magic partnered with Google Cloud and Nvidia to build two supercomputers named Magic-G4 and Magic-G5.
- Magic has 23 employees and advertises San Francisco engineering salaries ranging from $100,000 to $900,000 per year.
Connected Companies & Entities
12 Entities mapped“Austrian-founded, San Francisco-based AI startup that raised $320 million in a new financing round....”
“AI coding startup with 'Devin' that Magic has surpassed in total funding....”
“GPU supplier whose H100 and GB200 chips Magic uses for its AI supercomputers....”
“Partner with Magic and Nvidia to build the Magic-G4 and Magic-G5 supercomputers....”
“AI coding startup listed in the comparison table with $222 million raised....”
“Listed as an investor in Magic's funding table....”
“Mentioned for its announced purchase of 350,000 Nvidia H100 GPUs....”
“Listed as an investor in Magic's funding table....”
“Listed as an investor in Magic's funding table....”
“Maker of GitHub Copilot, which Magic aims to challenge as the leading AI coding assistant....”
“Listed as an investor in Magic's funding table....”
Ontology Mapping & Concepts
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