The company behind the coding assistant Devin, known as Cognition, has brought in $2 billion at a $48 billion valuation. This round came to an end just four months after its last funding, which set the firm’s worth at $26 billion.
The investment round was led by Andreessen Horowitz, Accel, Founders Fund, General Catalyst, and Avenir. The new valuation suggests that VCs believe there is still room for several major companies to compete in AI coding, which remains one of the field’s most important uses.
Revenue Growth Since May
The startup reports that its revenue run rate has climbed from $492 million to $900 million since May. Cognition offered no explanation for how it arrives at that number, which typically involves taking a month’s top line and multiplying it by 12.
The growth is fast. But it still trails a rival.
Cursor’s Sale and Its Shadow
In April, the coding assistant Cursor was in discussions to raise capital at a $50 billion valuation. A few weeks later, Cursor agreed to sell to SpaceX for $60 billion.
When the funding talks took place, Cursor’s revenue for the year had already topped $2 billion. As a result, Cognition now sits on a revenue multiple that is higher than what Cursor held back in the spring.
According to investors familiar with Cursor’s financials, the company was sold to SpaceX largely due to its severe compute constraints. Whether Cognition will encounter similar limitations remains unknown.
The Compute Bill
Cognition leases an Nvidia server cluster that costs hundreds of millions of dollars each year. That could push its total cash burn to $800 million this year, The Information reported.
Cognition is building its own model using open source options, similar to what Cursor did before becoming part of SpaceX. Relying less on costly third-party models from OpenAI and Anthropic should reduce expenses and move Cognition closer to reaching a point where it no longer loses money.
Projections for 2026
According to The Information, Cognition’s annualized revenue is projected to land between $4 billion and $5 billion by the end of 2026. TechCrunch reported in the spring that Cursor was on target to top $6 billion by year-end.
The gap is notable. So is the investor lineup.
A16z Returns
A big investor behind Cursor made a fortune when SpaceX bought it, and now that firm is back to lead a round in a company that competes with Cursor.
The selection points toward a market where more than one company can succeed. It appears investors think several AI coding firms can prosper together.
Founding and Customers
Scott Wu, a man skilled in mathematics, founded Cognition in 2024. The company serves as a major enterprise customer to several notable organizations: Mercedes-Benz, NASA, Goldman Sachs, and Citi.
| Event | Date |
|---|---|
| Previous raise at $26B valuation | May |
| New round at $48B valuation | Four months after the May raise |
| Cursor sale to SpaceX | April |
| Revenue projection for 2026 | End of 2026 |
In just four months, the startup’s worth climbed from $26 billion to $48 billion. The next step will depend on how much it spends on computing, how quickly it takes in money, and how good its own models turn out to be.
The next year will test that bet.
Source: techcrunch.com
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