Cognition Raises $2 Billion at $48 Billion Valuation, Showing Confidence in AI Coding Market
Cognition, a startup developing an AI coding assistant named Devin, has raised $2 billion at a valuation of $48 billion. This marks a significant increase from its previous valuation of $26 billion just four months ago and is led by top venture capital firms including Andreessen Horowitz, Accel, Founders Fund, General Catalyst, and Avenir. The funding highlights investor confidence in the AI coding market, where multiple major players are expected to capture substantial shares. Cognition reported that its annualized run-rate revenue has grown from $492 million to $900 million since May 2025. The startup is also training an open-source model to reduce reliance on expensive third-party models and cut costs. Cognition currently holds a higher revenue multiple than Cursor, another AI coding assistant that was acquired by SpaceX for $60 billion in April after being valued at around $50 billion during fundraising talks.
Topics: AI coding assistants funding startups valuation