Cognition, the startup behind the coding assistant Devin, announced it has raised $2 billion in new funding at a $48 billion valuation. This financing round follows a previous raise just four months earlier when Cognition was valued at $26 billion.
The round was led by Andreessen Horowitz, Accel, Founders Fund, General Catalyst and Avenir.
Revenue run-rate and growth
Cognition said its annualized run-rate revenue grew from $492 million to $900 million since its last fundraising in May. The company did not disclose the exact method used to calculate run-rate; this metric is commonly derived by annualizing a single month’s top-line revenue.
Investors see the sizable valuation as evidence that multiple large firms can still secure meaningful market share in AI-assisted coding, a major application area for the technology.
Comparison with Cursor and the SpaceX deal
Cursor, another prominent coding assistant, was in talks in April to raise capital at a $50 billion valuation, and later that month agreed to a $60 billion sale to SpaceX. At the time of those funding discussions, Cursor’s annualized revenue had exceeded $2 billion. That context implies Cognition currently trades at a higher revenue multiple than Cursor did in the spring.
According to investors familiar with Cursor’s finances, Cursor’s sale to SpaceX was driven largely by severe compute constraints. It is not yet clear whether Cognition will face similar shortages.
Compute costs and cash burn
The Information reported that Cognition leases an Nvidia server cluster costing several hundred million dollars per year. That arrangement could push the company’s total cash burn to as much as $800 million this year, according to the report.
Training its own models to reduce costs
Like Cursor before its SpaceX deal, Cognition is training its own model using open-source alternatives. The company expects that over time, reducing dependence on expensive third-party models from providers like OpenAI and Anthropic will lower costs and move it closer to breakeven.
Forecasts and customers
The Information projects Cognition could reach $4 billion to $5 billion in annualized revenue by the end of 2026. By comparison, TechCrunch reported in spring that Cursor was on track to exceed $6 billion by year-end.
Cognition was founded in 2024 by math prodigy Scott Wu. Its notable enterprise customers include Mercedes‑Benz, NASA, Goldman Sachs and Citi.
