Cognition, the company behind the AI coding assistant Devin, has just announced a massive $2 billion funding round that values the startup at $48 billion. This latest raise comes only four months after the firm secured funding at a $26 billion valuation, with the new round spearheaded by Andreessen Horowitz, Accel, Founders Fund, General Catalyst, and Avenir. The impressive valuation jump indicates that venture capitalists still believe there’s plenty of room for multiple major contenders to carve out substantial market share in AI-powered coding, which stands as one of the most impactful uses of the technology today.

According to Cognition, its annualized run-rate revenue has climbed from $492 million to $900 million since its previous fundraising announcement in May. The company didn’t provide specifics on how it arrives at that figure, though this metric typically represents a single month’s revenue multiplied by twelve. For context, Cursor, another widely used coding assistant, was reportedly in discussions in April to raise capital at a $50 billion valuation—before agreeing to be acquired by SpaceX for $60 billion later that same month. At the time of those funding talks, Cursor’s annualized revenue had already eclipsed $2 billion.

That means Cognition is currently commanding a higher revenue multiple than Cursor did back in the spring. Cursor’s decision to sell to SpaceX was largely driven by severe compute constraints, according to investors familiar with its financial situation. Whether Cognition will face similar hurdles remains uncertain. The startup leases an Nvidia server cluster that costs hundreds of millions of dollars each year, which could drive its total cash burn to $800 million in 2025, as reported by The Information.

Mirroring Cursor’s approach before its SpaceX acquisition, Cognition is now training its own model built on open-source foundations. By gradually lessening its dependence on pricey third-party models from OpenAI and Anthropic, the company aims to reduce costs and move closer to profitability. The Information projects that Cognition could reach $4 billion to $5 billion in annualized revenue by the end of 2026.

Interestingly, a16z—a major backer of Cursor that profited handsomely from the SpaceX sale—is now returning to lead a round in a direct competitor. Founded in 2024 by math prodigy Scott Wu, Cognition counts Mercedes-Benz, NASA, Goldman Sachs, and Citi among its key enterprise clients.