Cognition raises $2B at $48B valuation for coding assistant Devin

Cognition, the startup behind coding assistant Devin, raised $2 billion at a $48 billion valuation, four months after its previous round valued the company at $26 billion. Andreessen Horowitz, Accel, Founders Fund, General Catalyst, and Avenir led the round, Cognition announced Monday.

The startup said its annualized run-rate revenue has grown from $492 million to $900 million since its May fundraise, though it did not explain how it calculates that figure. The Information reported Cognition is expected to reach $4 billion to $5 billion in annualized revenue by the end of 2026.

The valuation signals investors still see room for multiple winners in AI coding, a market that recently consolidated. Cursor was in talks in April to raise at a $50 billion valuation before selling to SpaceX for $60 billion. Cursor's annualized revenue had surpassed $2 billion at the time, meaning Cognition now commands a higher revenue multiple than Cursor did in the spring.

Cursor sold largely because it was severely compute-constrained, according to investors familiar with its financials. Cognition leases an Nvidia server cluster costing hundreds of millions of dollars annually, which could push its cash burn to $800 million this year, The Information reported. Like Cursor, Cognition is training its own model on open-source alternatives to cut reliance on expensive third-party models from OpenAI and Anthropic.

Cognition, founded in 2024 by Scott Wu, counts Mercedes-Benz, NASA, Goldman Sachs, and Citi among its customers.