Based in San Francisco magicwhich develops artificial intelligence models for writing software, is reportedly in talks with investors to raise one other $200 million.
The raise would value the company at $1.5 billion — triple its previous valuation from just five months ago — according to Reuters report. Magic has no revenue and no products for sale, the report says.
The startup’s last funding round took place in February and was led by NFDG Projectsin which in addition they took part Capital G AND You live in Gil.
Investors in the latest round include, among others: Jane Street CapitalAccording to the report.
Hot sector
While every little thing in the AI space is all the rage, software development seems to be something that investors are particularly focused on as they appear for the best applications for this technology in the near future.
AI not only guarantees to speed up app and software development, but it could possibly also reduce the cost of software developers—and the hassle of finding them to hire. It may also make them more productive.
Other startups that have raised funding in this industry include London-based company Builder.aiwhich raised over $250 million in Series D funding led by Qatar Investment Authority last 12 months.
Earlier this 12 months in Palo Alto, California Increase closed a $227 million Series B funding round at a post-funding valuation of $977 million. Augment helps developers and software teams by providing them with AI coding assistance.
Same week in San Francisco Getting to know supposedly blocked a $175 million investment led by Founders Fund at a $2 billion valuation. The 6-month-old startup has developed an AI-powered coding assistant called Devin.
Founded in 2022, Magic has raised $145 million, according to Crunchbase.