AI Coding Startup Cognition Raises USD 2Bn at USD 48Bn Valuation

Cognition, the startup behind AI coding assistant Devin, has raised USD 2 billion at a USD 48 billion valuation. The round was led by Andreessen Horowitz, Accel, Founders Fund, General Catalyst and Avenir and comes four months after its previous raise at a USD 26 billion valuation.

The company said its annualized run-rate revenue has grown from USD 492 million to USD 900 million since May. Cognition did not disclose how the figure is calculated.

The valuation signals investor confidence that multiple companies can capture significant share in the AI coding market, rather than a single winner dominating. Cursor, a rival coding assistant was in talks for a USD 50 billion valuation in April before agreeing to sell to SpaceX for USD 60 billion. At the time, Cursor’s annualized revenue had crossed USD 2 billion, putting Cognition’s current revenue multiple above Cursor’s spring valuation.

Cursor’s sale to SpaceX was driven largely by compute constraints, according to investors familiar with its financials. It remains unclear whether Cognition faces similar limitations. The company leases an Nvidia server cluster costing hundreds of millions annually, which could push its total cash burn to USD 800 million this year.

Like Cursor before its acquisition, Cognition is training its own model based on open-source alternatives, aiming to reduce dependence on third-party models from OpenAI and Anthropic and lower costs over time.

Cognition is projected to reach USD 4-5 billion in annualized revenue by the end of 2026. Cursor was on track to surpass USD 6 billion by year-end, according to earlier estimates. Andreessen Horowitz, a major Cursor backer is now leading the round in a Cursor competitor.