**Augment Secures $227 Million to Revolutionize AI-Powered Code Generation**
Emerging from stealth mode, code generation startup Augment has successfully raised $227 million in a Series B funding round, aiming to develop innovative AI-driven coding tools that enhance developer productivity. Established in 2022, Augment focuses on creating advanced AI coding assistance tools designed to alleviate the tedious aspects of programming, enabling developers to rediscover the joy of coding.
With a total fundraising of $252 million and a company valuation nearing $977 million, Augment is poised for significant growth. The latest funding round saw contributions from prominent investors, including Index Ventures, Lightspeed Venture Partners, and Innovation Endeavors, the investment firm founded by former Google CEO Eric Schmidt. The capital will be invested in accelerating product development and bolstering the company’s engineering and go-to-market strategies.
One of Augment's key offerings is its ability to securely integrate with a variety of codebases, allowing its AI tools to privately interact with user data. The company prioritizes security and user privacy, ensuring that developers’ intellectual property remains fully protected.
Augment was co-founded by Igor Ostrovsky, a former software engineer at Microsoft, and Guy Gur-Ari, an ex-Google AI researcher. Their team features a diverse mix of talent from industry giants such as Yahoo!, Shopify, Meta, Nvidia, Databricks, and VMware. Leading Augment as CEO is Scott Dietzen, the former CEO of Pure Storage. "With the emergence of large language models, we recognized an opportunity to significantly enhance programming productivity while improving software quality," Dietzen stated.
Augment aims to fill a critical gap in the existing AI code generation landscape. "Current AI platforms for code fall short of their potential, and we are excited to launch a product that bridges this gap," said Dietzen.
Eric Schmidt echoed this sentiment, emphasizing the transformative power of AI in software development. “The cost and complexity of software development can be overwhelming," he remarked. "AI is set to revolutionize coding, and after careful analysis, we believe Augment possesses the ideal team and strategy to empower programmers and enhance software delivery across organizations."
Despite Augment's promising outlook, the code generation sector faces challenges. Competitors such as Kite shuttered their operations in 2022 due to monetization difficulties. Meanwhile, Microsoft’s GitHub Copilot has been experiencing financial losses, averaging a deficit of $20 per user each month, despite a growing user base. Free-to-access platforms like ChatGPT and Claude present an additional challenge, offering code generation capabilities alongside a broader range of functionalities. In addition, open-source models such as Hugging Face’s StarCoder 2 provide developers with effective and cost-free coding solutions.
As Augment positions itself as a leader in AI-oriented software development, it seeks to redefine the coding experience for developers around the world, paving the way for a more efficient and enjoyable programming landscape.
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