The AI sector, particularly software development, is attracting significant investor interest due to its potential to expedite application and software development, reduce costs, and increase productivity. Other startups in this space that have recently raised funds include Builder.ai, Augment, and Cognition. Since its founding in 2022, Magic has raised a total of $145 million.
Key takeaways:
- San Francisco-based startup Magic, which develops AI models to write software, is reportedly in talks to raise $200 million at a $1.5 billion valuation, triple its previous valuation from five months ago.
- Magic has no revenue and no product for sale, and last raised a $117 million round in February led by NFDG Ventures, with participation from CapitalG and Elad Gil.
- AI in software development is a hot sector, with potential to speed up application and software development, reduce costs, and increase productivity.
- Other startups in the space that have recently raised funds include Builder.ai, Augment, and Cognition, which have developed AI coding assistance and AI-powered coding assistants.