Cognition, the startup behind the AI coding assistant Devin, has secured $2 billion in funding, pushing its valuation to $48 billion. This new round comes just four months after a previous fundraising at a $26 billion valuation. Leading the investment are prominent venture capital firms including Andreessen Horowitz, Accel, Founders Fund, General Catalyst, and Avenir.

The significant increase in valuation underscores investor belief that the AI coding sector remains open to multiple major players rather than being dominated by a single winner. Since its last funding round in May, Cognition reports its annualized run-rate revenue has nearly doubled, rising from $492 million to $900 million. Although the company has not detailed its calculation method, run-rate revenue typically extrapolates monthly revenue over a year.

In comparison, Cursor, another AI coding assistant, was in talks earlier this year to raise capital at a $50 billion valuation before being acquired by SpaceX for $60 billion. At that time, Cursor’s annualized revenue exceeded $2 billion. Cognition’s current revenue multiple surpasses Cursor’s from the spring, indicating strong investor confidence despite lower absolute revenue.

Cursor’s acquisition was partly driven by severe compute limitations, a challenge that remains uncertain for Cognition. The startup leases a costly Nvidia server cluster, with annual expenses reportedly reaching hundreds of millions of dollars, potentially contributing to a cash burn of up to $800 million this year.

To manage costs, Cognition is developing its own AI model based on open-source technology, aiming to reduce dependence on expensive third-party providers like OpenAI and Anthropic. This strategy could improve profitability over time.

Projections suggest Cognition could achieve $4 billion to $5 billion in annualized revenue by the end of 2026. For context, Cursor was expected to surpass $6 billion in revenue by the end of this year. Notably, Andreessen Horowitz, a key investor in Cursor, is now backing Cognition, signaling continued confidence in the AI coding assistant market.

Founded in 2024 by Scott Wu, a recognized math prodigy, Cognition has attracted major enterprise clients including Mercedes-Benz, NASA, Goldman Sachs, and Citi, highlighting its growing influence across industries.