AI Revolutionizes Coding – Developers Are Onboard
A recent StackOverflow survey reveals that 44% of software engineers are already integrating AI tools into their development processes, with an additional 26% planning to do so soon. According to Gartner, over half of organizations are either piloting or have implemented AI-driven coding assistants, and it’s projected that 75% of developers will leverage such tools by 2028.
Former Microsoft software developer Igor Ostrovsky is convinced that it won’t be long before every developer uses AI in their workflows. “Software engineering is often a challenging and tedious job, especially at scale,” he stated. “AI has the potential to enhance software quality, boost team productivity, and reinvigorate the joy of programming.” Motivated by this vision, Ostrovsky set out to create the AI-powered coding platform he wished he had.
That vision turned into Augment, which recently emerged from stealth mode, securing $252 million in funding with a post-money valuation approaching unicorn status at $977 million. With backing from prominent investors, including former Google CEO Eric Schmidt and venture firms like Index Ventures and Lightspeed Venture Partners, Augment aims to transform the evolving landscape of generative AI coding technologies.
“Many companies express dissatisfaction with the software they develop; it’s often fragile, complex, and costly to maintain,” Ostrovsky noted. “Development teams frequently deal with long backlogs for feature requests, bug fixes, security updates, and more. Augment is uniquely positioned to empower programmers and enhance organizational efficiency, allowing for the faster delivery of high-quality software.”
Ostrovsky has a robust background, having spent nearly seven years at Microsoft before becoming a founding engineer at Pure Storage, a startup focused on flash data storage solutions. His experience at Microsoft included work on components of Midori, a next-generation operating system that never launched but influenced various Microsoft projects over the years.
In 2022, Ostrovsky partnered with Guy Gur-Ari, a former AI research scientist at Google, to develop Augment’s Minimum Viable Product (MVP). To strengthen their leadership team, they recruited Scott Dietzen, former CEO of Pure Storage, and Dion Almaer, ex-Google engineering director and Shopify VP of engineering.
Despite its impressive funding and talent pool, Augment's operations remain somewhat shrouded in secrecy. During our discussion, Ostrovsky kept details about the user experience and the generative AI models behind Augment’s features under wraps, only revealing that the platform utilizes advanced, industry-leading open models.
When it comes to revenue generation, Augment plans to adopt a software-as-a-service subscription model, with pricing details expected to be unveiled as they approach their General Availability (GA) release later this year. "Our funding gives us ample runway to build what we believe is the best team in enterprise AI," Ostrovsky mentioned. "We're accelerating product development and preparing for rapid growth as we expand our engineering and market functions."
This rapid growth may be essential as Augment enters a highly competitive industry. Major tech players, including Microsoft with its GitHub Copilot (boasting over 1.3 million individual paying users and 50,000 enterprise customers), Amazon’s AWS CodeWhisperer, and Google’s Gemini Code Assist, are all vying for dominance in the AI coding assistant space.
In addition to these tech giants, numerous startups are also emerging, including Magic, Tabnine, Codegen, and Cognition, which recently raised $175 million. The landscape also includes offerings from Harness and JetBrains, creators of the Kotlin programming language, as well as Sentry with its cybersecurity-focused solution.
The question remains: can all these companies, including Augment, coexist in the market? With the high computational costs involved, the AI coding assistant sector poses significant challenges. For instance, generative AI coding startup Kite was forced to close down due to escalated training and operational costs in December 2022. Even GitHub Copilot faces a financial strain, reportedly losing $20 to $80 per user each month, according to The Wall Street Journal.
Ostrovsky asserts that Augment is already gaining traction, claiming that "hundreds" of software developers across "dozens" of companies, including the Eric Schmidt-backed Keeta, are utilizing Augment in early access. However, the longevity of this momentum remains uncertain.
Concerns also linger about technical issues affecting AI-driven code generation, especially regarding security vulnerabilities. An analysis by GitClear highlighted that coding assistants are leading to an increase in erroneous code within codebases, complicating maintenance for software developers. Security experts warn that generative coding tools could exacerbate existing bugs and vulnerabilities. Additionally, studies from Stanford indicate that developers using AI recommendations may produce less secure code.
Copyright considerations add another layer of complexity. Generative AI models like Augment’s were likely trained on publicly available datasets, some of which could be copyrighted or subject to restrictive licenses. While some companies argue for protections under fair use doctrine, this has not prevented coders from pursuing class action lawsuits over perceived licensing and intellectual property infringements.
In response to these challenges, Ostrovsky emphasizes that existing AI coding assistants fall short in understanding a programmer's intent, improving software quality, or enhancing team productivity. Augment’s engineering team combines extensive AI and systems expertise, positioning the company to deliver significant innovations in AI coding assistance.
Based in Palo Alto, Augment currently has around 50 employees, with plans to double that number by year’s end.
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