The intersection of AI and coding has been one of the hottest areas of enterprise capital funding in recent memory. But even in a hot investment environment, this week was a standout.
Two corporations, Magic AND Codeconfirmed $320 million and $150 million in fundraising, respectively. The two corporations are a part of a larger group of recently funded corporations that aim to extend efficiency and alleviate pain points in the coding process with AI-powered tools.
San Francisco-based Magic, a company that develops artificial intelligence models for writing software, said the recent funding included support from recent investors Eric Schmidt, Jane Street Capital, Sequoia Capital AND Atlassian VenturesThe 2-year-old startup has raised over $465 million thus far, in keeping with Crunchbase data.
San Jose, California-based Codeium, which is working on an AI coding assistant, said funding for its recently closed Series C round got here from a major investor General CatalystNear Little Perkins AND Green oaksThe three-year-old company says it is working on tools that may improve code quality while reducing development costs and time.
The funding comes amid a busy period of funding rounds around AI and coding automation. Using Crunchbase dataWe have prepared a list of nine revolutionary corporations in this field that have raised significant rounds of financing over the past 12 months.
Interestingly, many of those corporations move quickly from one round to the next. Magic raised its previous large round in February. Codeium’s Series C got here just seven months after its Series B. And Silicon Valley-based Increasecreator of an AI coding tool, raised Series B funding in April, just 4 months after raising Series A funding.
It’s easy to see the appeal of what these startups offer. Code development has historically been an expensive, time-consuming, and labor-intensive endeavor, with a persistent talent shortage. If recent AI tools might help solve any of those problems, they’ll surely find a welcome audience among corporations of all sizes.