Magic
Category: AI Developer Tools
An AI software engineer designed to understand natural language instructions and autonomously complete complex coding tasks, functioning as a collaborative teammate for developers. Magic was founded in 2022. The company is led by Eric Steinberger. Based in San Francisco, California, USA. Team size: Approximately 50-100. Total funding raised: $515 million. Latest round: Series C. Key investors include Eric Schmidt, CapitalG, Nat Friedman, Daniel Gross, NFDG Ventures, Elad Gil, Sequoia, Jane Street, Atlassian, Amplify Partners.
- Founded
- 2022
- Headquarters
- San Francisco, California, USA
- Team size
- Approximately 50-100
- Total funding
- $515 million
Value proposition
Accelerates software development by handling complex coding tasks, allowing human engineers to focus on architecture, product strategy, and creativity.
Products and solutions
Magic (AI Software Engineer)
Unique value
Magic focuses on creating an AI agent that can reason about and complete entire software engineering tasks, going beyond simple code completion to handle complex logic and large codebases.
Target customer
Enterprise software development teams.
Industries served
Technology, Software Development, Enterprise Solutions
Technology advantage
Proprietary LTM (Long-Term Memory) models trained for coding with ultra-long context (claimed 100M tokens), custom training/inference stack, and large-scale GPU clusters via Google Cloud (GB200s).
How they differentiate
Unlike code completion tools, Magic operates as an autonomous agent that can take on and complete entire tasks, from bug fixes to feature implementation, based on natural language descriptions.
Main competitors
Cognition (Devin), GitHub Copilot, Amazon CodeWhisperer, Tabnine
Key partnerships
Google Cloud partnership to build Magic-G4 (H100) and Magic-G5 (GB200 NVL72) supercomputers for training/serving frontier code models
Notable customers
Not publicly disclosed
Major milestones
Seed $5M (2022); Series A $23M led by CapitalG (Feb 2023); Series B $117M led by NFDG/Nat Friedman & Daniel Gross (Feb 2024); Series C $320M with Eric Schmidt, CapitalG, Sequoia, Atlassian, Jane Street et al. (Aug 2024)., Google Cloud partnership for Magic-G4/G5 supercomputers and LTM models with 100M-token context (2024)., Company reports $515M total capital raised.
Growth metrics
Sought ~$1.5B valuation in mid-2024 Series C process (prior round ~$500M post-money Feb 2024); Series C closed at $320M. No verified $4B valuation or Google IP licensing deal.
Market positioning
Positioned as a premium, enterprise-grade AI software engineer aimed at solving complex development challenges, rather than just assisting with line-by-line coding.
Geographic focus
Global, with a primary focus on the US technology sector.
Patents and IP
Information not publicly available.
About Eric Steinberger
Co-founder of ClimateScience.org; ML researcher at Meta FAIR; studied computer science at University of Cambridge. Co-founded Magic in 2022 with Sebastian De Ro to build an AI software engineer / path to AGI via automating AI research and code generation.
Latest news about Magic
- Toronto-based General Magic secured US$7.2M in an oversubscribed seed round led by Radical Ventures, with personal investment from Cohere CEO Aidan Gomez and participation from a16z Speedrun and OpenA
- Magic raised $10M seed for its AI restaurant CRM Loyalist, backed by Mario Carbone and led by Lerer Hippeau. The platform tracks $2B+ in guest spend across hundreds of restaurants with 10x revenue gro
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Official website: https://www.magic.dev/
