AI Tech / news
Cognition raises $2B at $48B valuation for AI coding assistant Devin
Cognition, the company behind the AI coding assistant Devin, has raised $2 billion at a $48 billion valuation, up sharply from a $26 billion round just four months earlier. The investment signals that venture capitalists believe the AI coding market can support several major players.
Devin developer Cognition has closed a new funding round of $2 billion, bringing its valuation to $48 billion. The round was led by Andreessen Horowitz, Accel, Founders Fund, General Catalyst and Avenir, arriving only four months after Cognition raised a round that valued it at $26 billion.
Since that May fundraising, Cognition said its annualized run-rate revenue has risen from $492 million to $900 million. Run-rate revenue is typically calculated as a single month’s top line multiplied by 12; the company did not detail its exact methodology.
At its new valuation, Cognition is commanding a higher revenue multiple than rival Cursor did earlier this year, according to figures from that company’s funding talks. Cursor was in discussions in April to raise capital at a $50 billion valuation with annualized revenue beyond $2 billion, and later agreed to sell to SpaceX for $60 billion.
Investors familiar with Cursor’s finances have said the sale was driven largely by severe compute constraints. It is not yet clear whether Cognition will encounter similar infrastructure bottlenecks as it scales.
The size of the deal bolsters the view that AI-assisted software development is not a winner-take-all market, with backers willing to bet on multiple contenders.