By Rajwa Quasim
AI coding startup Cognition has raised more than $2 billion in a Series E funding round, valuing the company at $48 billion. The funding comes nearly four months after Cognition announced a $26 billion valuation. The company is developing Devin, an AI coding assistant. Cognition was founded in 2024 by Scott Wu.
The company said in a statement that the Series E funding was led by new investors Andreessen Horowitz and Accel, alongside existing investors Founders Fund, General Catalyst and Avenir. Other participants included Benchmark, Bessemer Venture Partners, Kleiner Perkins, Greylock and Lightspeed.
Cognition said its annualized revenue run rate climbed from $492 million in May to nearly $900 million currently. The company did not detail its exact calculation method, but an annualized run rate is typically calculated by multiplying a single month’s revenue by 12.
Cognition said Devin is being used by companies including Nvidia for chip design, GE Aerospace for aviation work, Citigroup for financial services, Mercedes-Benz Group for automotive engineering and Modal Labs for AI infrastructure.
READ: ‘Not for sale’: Cognition CEO denies SpaceX acquisition talks (August 20, 2026)
Devin, the company’s AI agent, can investigate incidents, identify and prioritize security vulnerabilities, and automatically carry out tasks based on events in tools such as Slack, GitHub, Linear and other systems without requiring users to open a chat for each task.
The company has offices in multiple locations, including Washington, D.C., Tokyo, Singapore, London, São Paulo, Madrid, New York and Austin.
Cognition also faces significant costs as it plans to expand. The company leases a large Nvidia server cluster that costs millions of dollars annually, while its total cash burn could reach $800 million this year.
To reduce its dependence on third-party AI models, Cognition is also developing its own models using open-source alternatives. This could give the company greater control over its technology and potentially lower computing costs.
Cognition said its goal is to fill the gap between the world’s growing demand for software and the limited capacity of engineers to build it.
“We believed engineers should operate more like architects and delegate execution to swarms of agents. Together, engineers and their Devins could dramatically expand the world’s capacity to build great software and solve hard problems,” the company said.
READ: Cognition AI now valued over $10 billion with latest funding (September 9, 2025)
The company said it is building an “independent agent lab” that allows it to “choose and combine the models best suited to the work, including its own, rather than tie customers to one provider.”
Competition in AI coding has also intensified. Cursor, another leading AI coding company, was reportedly in talks to raise money at a valuation of about $50 billion before agreeing to be acquired by tech giant SpaceX for $60 billion.
According to TechCrunch, Cursor had surpassed $2 billion in annualized revenue at the time of the funding discussions. This highlights the scale of Cognition’s current valuation, which is significantly higher than Cursor’s reported valuation before the SpaceX deal.
Cognition is expected to reach annual revenue of $4 billion to $5 billion by the end of this year, while Cursor is expected to reach $6 billion, according to media reports.
It is also worth noting that a16z, or Andreessen Horowitz, has now invested in both companies, suggesting that the firm believes there is room for more than one major player in the AI coding market.