Cognition hits $48B valuation, signaling investors believe AI coding is far from a winner-take-all market
techcrunch ·
Cognition, the startup behind the AI coding assistant Devin, raised $2 billion at a $48 billion valuation, led by investors including Andreessen Horowitz, Accel, and Founders Fund. This round came just four months after its previous valuation of $26 billion, signaling venture capitalists still see room for multiple major players in AI coding. Since its May fundraise, Cognition's annualized run-rate revenue grew from $492 million to $900 million. By comparison, rival Cursor had surpassed $2 billion in annualized revenue before agreeing to sell to SpaceX for $60 billion, in part due to compute constraints. Cognition is training its own open-source-based model to reduce reliance on expensive third-party models and cut costs. The company is expected to reach $4 billion to $5 billion in annualized revenue by the end of 2026, and counts Mercedes-Benz, NASA, Goldman Sachs, and Citi among its enterprise customers.
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