Key facts
- Cognition AI secured $2 billion in funding at a $48 billion valuation.
- The company's annualized run-rate revenue increased to $900 million.
- The funding round was led by Andreessen Horowitz and Accel.
- Cognition is developing an AI coding assistant named Devin.
- Cognition projects reaching $4 billion to $5 billion in annualized revenue by the end of 2026.
AI coding startup Cognition AI has raised $2 billion in a Series E funding round, achieving a valuation of $48 billion. This marks a significant increase from its previous valuation of $26 billion in May. The round was led by new investors Andreessen Horowitz and Accel, with participation from existing backers Founders Fund, General Catalyst, and Avenir.
Cognition reported that its annualized run-rate revenue has grown from $492 million to nearly $900 million since its last funding round. The substantial valuation reflects strong investor confidence in the AI coding market, suggesting it can support multiple significant players rather than a single dominant entity.
The company is developing Devin, an autonomous software-engineering agent capable of planning, writing, testing, and deploying code with minimal human intervention. Cognition aims to reduce reliance on third-party AI models from providers like OpenAI and Anthropic by utilizing open-source alternatives to manage costs, with a projected cash burn of $800 million this year. The startup anticipates reaching $4 billion to $5 billion in annualized revenue by the end of 2026.
Founded in 2024 by Scott Wu, Cognition serves enterprise clients including Mercedes-Benz, NASA, Goldman Sachs, and Citi.