Cognition Raises $2B at $48B Valuation as AI Coding Arms Race Escalates

Cognition, the startup developing the Devin AI coding assistant, secured $2B in funding led by Andreessen Horowitz and Founders Fund at a $48B valuation. The company's annualized run-rate revenue nearly doubled from $492M to $900M over a four-month period. Despite massive revenue growth, Cognition's cash burn could hit $800M this year due to the high cost of leasing Nvidia server clusters. The funding arrives shortly after rival coding assistant Cursor sold to SpaceX for $60B, meaning Cognition now commands a higher revenue multiple than Cursor did in the spring. To reduce its reliance on expensive third-party models from OpenAI and Anthropic, Cognition is shifting toward training its own models on open-source alternatives.