Cognition, the startup developing coding assistant Devin, announced it raised $2 billion at a $48 billion valuation. The round, which comes just four months after Cognition’s previous fundraise at a $26 billion valuation, was led by Andreessen Horowitz, Accel, Founders Fund, General Catalyst, and Avenir. The startup’s soaring valuation signals that VCs still see room for multiple major players to capture meaningful market share in AI coding, one of the technology’s most significant applications.

Cognition said that since announcing its last fundraise in May, its annualized run-rate revenue has grown from $492 million to $900 million. While the startup didn’t explain how it calculates that run-rate revenue, the metric is usually defined as a month’s top line multiplied by 12. This growth is notable, especially when compared to another popular coding assistant, Cursor, which was in talks to raise capital at a $50 billion valuation before agreeing to sell to SpaceX for $60 billion.

At the time of the funding talks, Cursor’s annualized revenue had surpassed $2 billion. This means Cognition currently commands a higher revenue multiple than Cursor did in the spring. Cursor ultimately sold to SpaceX largely because it was severely compute-constrained, according to investors familiar with its financials. It is unclear whether Cognition will face similar compute shortages.

Cognition leases an Nvidia server cluster that costs hundreds of millions of dollars annually, which could push its total cash burn to $800 million this year, according to reports. Like Cursor did before joining SpaceX, Cognition is training its own model based on open source alternatives. Over time, reducing its reliance on expensive third-party models from OpenAI and Anthropic will help cut costs and bring the company closer to breakeven.

Cognition is expected to reach $4 billion to $5 billion in annualized revenue by the end of 2026. By comparison, another coding assistant was on track to surpass $6 billion by year-end. Still, it’s notable that a16z, a major backer of the sold coding assistant, which made a significant profit from the sale, is now leading a round in a competitor, Cognition.

Founded in 2024 by math prodigy Scott Wu, Cognition counts Mercedes-Benz, NASA, Goldman Sachs, and Citi among its major enterprise customers. The company's ability to attract such high-profile clients underscores its potential in the AI coding market.

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