TLDR:
- Magic, an AI coding software company, is looking to raise $200 million at a $1.5 billion valuation.
- The company, which has no revenue or product for sale, is attracting investors due to the potential of AI in software development.
San Francisco-based Magic, a company specializing in developing AI models to write software, is reportedly seeking to raise $200 million in funding at a valuation of $1.5 billion. This valuation would be triple its previous value from just five months ago, according to a report by Reuters. What sets Magic apart is its focus on AI in software development, an area that investors are increasingly interested in exploring due to its potential to accelerate application and software development processes, reduce the cost of software development, and address challenges related to hiring software developers. Other startups in this space, such as London-based Builder.ai and Palo Alto-based Augment, have also attracted significant funding for their AI-driven solutions for developers and software teams.
Magic, founded in 2022, has already raised $145 million in funding, as per Crunchbase. Despite having no revenue or product currently available, the company’s innovative approach to utilizing AI in coding software has caught the attention of investors. The potential for AI to revolutionize the software development process and enhance developer productivity makes Magic a promising investment opportunity.
In conclusion, Magic’s AI coding software, along with the broader interest in AI-driven solutions for software development, is driving investor interest in the company’s latest funding round. As the demand for efficient and effective coding solutions continues to grow, Magic’s disruptive technology positions it as a key player in the evolving landscape of AI software development.
