In a rapidly evolving market where artificial intelligence (AI) is transforming programming, Augment, backed by former Google CEO, Eric Schmidt, has officially launched this Wednesday, with a funding of $252 million and a post-funding valuation close to unicorn status, at $977 million. With the intention to compete in the emerging market of generative coding technologies with AI, Augment aims to significantly improve software quality and development team productivity.
The need for AI-driven coding assistants is evident, with 44% of software engineers acknowledging in a StackOverflow survey their current use in development processes, and 26% planning to adopt them soon. According to Gartner, over half of organizations are already implementing or experimenting with these assistants, and it is expected that 75% of developers will use them in some form by 2028.
Igor Ostrovsky, a former Microsoft software developer, and Guy Gur-Ari, previously an AI research scientist at Google, are the founders of Augment. They have been joined by Scott Dietzen, former CEO of Pure Storage, and Dion Almaer, former Google engineering director and VP of engineering at Shopify, to complete the company’s executive team.
The goal of Augment is clear: to provide an AI-powered coding platform that is high-performing and user-friendly. Although Ostrovsky has kept specific details about Augment’s user experience and generative AI models under wraps, he has assured that the company will use finely tuned “industry-leading” open models.
Augment plans to generate revenue through standard software-as-a-service subscriptions, with pricing and details to be revealed later this year as it approaches its general launch. With a solid funding that provides years of runway for continued development and rapid team expansion expected to double in size by year-end, Augment is positioned for accelerated growth.
However, the AI-driven coding assistant market is fiercely competitive, with tech giants like Microsoft with GitHub Copilot, Amazon with AWS’ CodeWhisperer, and Google with Gemini Code Assist leading the way, in addition to a growing number of startups.
Ostrovsky claims that there are already “hundreds” of developers in “dozens” of companies, including payment startup Keeta, using Augment in early access. Yet, the critical question remains: will this interest be sustainable? Furthermore, significant technical and legal challenges need to be addressed, particularly concerning vulnerabilities and copyright issues in training AI models.
Despite these challenges, Ostrovsky is confident that Augment will differentiate itself through its deep understanding of programmers’ needs and protection of intellectual property rights, hoping to bring AI-powered coding assistance innovations to developers and software teams worldwide.