Cognition, the developer of the coding assistant Devin, has raised 2 billion dollars in funding in a round led by Andreessen Horowitz, Accel, Founders Fund, General Catalyst and Avenir. The company’s reaching a valuation of 48 billion dollars shows investors expect multiple major players in the AI-powered coding sector to secure significant market share. The round came four months after Cognition raised funding at a valuation of 26 billion dollars.
Cognition said its annualized revenue had risen from 492 million dollars in May to 900 million dollars, but did not provide information on how it calculated the figure. Cursor, which operates in a similar field, was holding funding talks at a valuation of 50 billion dollars in April, while it was sold to SpaceX for 60 billion dollars that same month. Cursor’s annualized revenue at the time had exceeded 2 billion dollars. According to investors, one of the main reasons for the sale was that the company was facing serious constraints in computing capacity.
Cognition is reportedly leasing an Nvidia server cluster for hundreds of millions of dollars annually, and its total cash burn could reach 800 million dollars this year. The company is training its own model based on open-source alternatives to reduce its dependence on the expensive models of OpenAI and Anthropic. Cognition is expected to reach annualized revenue of between 4 billion and 5 billion dollars by the end of 2026, while Cursor’s revenue is projected to exceed 6 billion dollars. Founded by Scott Wu in 2024, the company’s customers include Mercedes-Benz, NASA, Goldman Sachs and Citi.
Why it matters
This table shows that competition in the AI-assisted coding market is shaped not only by software capabilities but also by access to model training and computing capacity. Cognition’s dependence on an Nvidia server cluster at high cost, along with expectations regarding its cash burn, leaves open the question of how much the rapid growth in revenue is offsetting the operational burden. The lack of an explanation of how annualized revenue is calculated makes it difficult to assess the figures behind the funding round and the comparisons with competitors. While the company’s efforts to develop its own open-source-based model reveal its goal of reducing dependence on OpenAI and Anthropic models, uncertainty remains over how this transition will affect service continuity and costs for customers such as Mercedes-Benz, NASA, Goldman Sachs and Citi.
Background
Cognition is not a new name in the FikirPilot archive: we published a news article mentioning the name in the past 90 days; that article is dated 9 September 2026.