Cognition, the startup behind the AI coding assistant Devin, has raised $2 billion in a new funding round, bringing its valuation to $48 billion. This latest investment comes just four months after a previous round valued the company at $26 billion. The round was led by prominent venture capital firms including Andreessen Horowitz, Accel, Founders Fund, General Catalyst, and Avenir.

The significant increase in valuation underscores investor confidence that the AI coding sector is not yet dominated by a single player, suggesting room for multiple companies to capture substantial market share. Since its last fundraising in May, Cognition reports that its annualized run-rate revenue has nearly doubled, rising from $492 million to $900 million. Although the company has not detailed its revenue calculation method, this figure typically represents monthly revenue multiplied by twelve.

Cognition’s growth contrasts with Cursor, another AI coding assistant, which was reportedly in talks to raise funds at a $50 billion valuation earlier this year before being acquired by SpaceX for $60 billion. At that time, Cursor’s annualized revenue exceeded $2 billion. Cognition’s current valuation implies a higher revenue multiple compared to Cursor’s earlier funding discussions.

Cursor’s acquisition was partly driven by limitations in computational resources, a challenge that Cognition may also face. The startup leases a high-cost Nvidia server cluster, with annual expenses potentially reaching hundreds of millions of dollars. This infrastructure investment could contribute to a total 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 costly third-party models from providers like OpenAI and Anthropic. This strategy could help the company move toward profitability.

Looking ahead, Cognition is projected to achieve $4 billion to $5 billion in annualized revenue by the end of 2026. For comparison, Cursor was expected to exceed $6 billion in revenue by the end of this year. Notably, Andreessen Horowitz, a key investor in Cursor, is leading the funding round for Cognition, highlighting continued investor interest in multiple AI coding platforms.

Founded in 2024 by Scott Wu, a recognized math prodigy, Cognition counts major enterprises such as Mercedes-Benz, NASA, Goldman Sachs, and Citi among its customers.