Highlights:

  • Magic may be able to finance the creation of more AI models with the USD 320 million investment that it disclosed recently.
  • Codeium, which also revealed a financing milestone, has given its programming assistance the capacity to handle massive volumes of code.

Two startups, Magic AI Inc. and Codeium, raised funding to support their development efforts. The companies using AI to make developers productive have closed nine-figure fundraising rounds.

Magic revealed that a group of well-known investors had contributed USD 320 million to the company. Codeium and Exafunction Inc. declared that they had closed a USD 150 million funding round valued at USD 1.25 billion. Both businesses are automating repetitive jobs for developers with AI, but they are doing it in different ways.

Based in San Francisco, Magic creates foundation models with programming goals in mind. In conjunction with the fundraising announcement, the business unveiled LTM-2-mini, a brand-new AI created internally. As for prompts, Magic claims to handle up to 100 million tokens, or roughly ten million lines of code.

For many programming automation use cases, the capacity to absorb vast volumes of code is helpful. For example, an AI designed to identify software vulnerabilities must search through application files with thousands of lines of code to identify potentially dangerous problems. It might take a developer search tool searching across several documentation sources to locate the explanation a user has asked for.

Magic tested its LTM-2-mini model by giving it several coding tasks to accomplish. In one experiment, the AI created a tool to gauge the strength of user passwords. In an additional internal test, LTM-2-mini developed a virtual calculator.

Magic may be able to finance the creation of more AI models with the USD 320 million investment that it disclosed recently. Eric Schmidt, the former CEO of Google LLC, Atlassian Corp., Jane Street, and Sequoia were all involved in the transaction. Several of their previous backers joined them, including the growth fund of Alphabet Inc., the parent company of Google, CapitalG.

Magic disclosed the capital round in addition to a new technological alliance with the industry leader in search. Through the partnership, the startup will have access to two Google Cloud-hosted AI supercomputers.

The first system will be powered by Nvidia Corp.’s H100 graphics processing units, which businesses have called Magic-G4. The manufacturer’s newest Blackwell B200 chips, which number in the tens of thousands, will power Magic-G5, the other supercomputer. It is said that the latter CPU is several times faster than the H100 in performing inference.

Google revealed that the combined performance of the two supercomputers will reach up to 160 exaflops. A billion calculations are performed every second on one exaflop. In a benchmark test conducted in May, the U.S. Energy Department’s Aurora system—the fastest AI supercomputer in the world—achieved a performance of 10.6 exaflops.

The other business, Codeium, which also revealed a financing milestone, has given its programming assistance the capacity to handle massive volumes of code. According to the business, the program can consume the complete code repository of an application. The AI can utilize its understanding of the program’s other modules to provide a more thorough response when a developer asks a query regarding a particular program component.

The business offers its program as an add-on for well-known code editing programs. When the extension is activated, the installed editor’s interface gains a chatbot. Developers can use the chatbot to alter code to increase hardware efficiency, resolve problems, and explain how a particular code fragment operates.

Codeium offers numerous other AI features. One such, called Smart Paste, lets developers copy a line of code and translate it into a different language before pasting it elsewhere. Before the update is released to production, another feature called Forge may check changes made to a code file for mistakes.

The business declared that the USD 150 million General Catalyst-led Series C round has been closed. Greenoaks and Kleiner Perkins also contributed. With the capital, Codeium plans to expand its installed base—which currently numbers over 700,000 active users—and add new features.