Cognition raises over $2 billion at a $48 billion valuation

Cognition, the startup behind the coding agent Devin, announced on Tuesday that it has raised over $2 billion at a $48 billion valuation. The Series E was led by new investors Andreessen Horowitz and Accel, alongside existing investors Founders Fund, General Catalyst, and Avenir, with a long list of additional participants including Benchmark, Bessemer, Kleiner Perkins, Greylock, and Lightspeed. The round comes four months after Cognition's previous fundraise at a $26 billion valuation. The company says its run-rate revenue has grown from $492 million to almost $900 million since that May round, though TechCrunch notes it did not explain how it calculates the figure. TechCrunch reads the deal as a signal that investors believe AI coding is not a winner-take-all market. Cursor, another coding assistant, was in talks in April to raise at a $50 billion valuation before agreeing to sell to SpaceX for $60 billion later that month, when its annualized revenue had passed $2 billion. That means Cognition now commands a higher revenue multiple than Cursor did. Investors familiar with Cursor's financials told TechCrunch it sold largely because it was severely compute-constrained. Cognition leases an Nvidia server cluster that costs hundreds of millions of dollars a year, and it is unclear whether it will face similar shortages. Cognition says it will use the capital to let engineers delegate execution to swarms of agents.