Cognition, a startup developing an AI-powered coding assistant named Devin, has announced that it raised $2 billion in new funding at a $48 billion valuation. This round, which follows a previous funding round in May at a $26 billion valuation, was led by prominent venture capital firms including Andreessen Horowitz (a16z), Accel, Founders Fund, General Catalyst, and Avenir. The rapid increase in Cognition’s valuation suggests that investors still believe there is room for multiple major companies to thrive in the AI coding space, which is one of the most promising applications of artificial intelligence. Since its last funding round in May, Cognition has seen its annualized run-rate revenue grow from $492 million to $900 million. Annualized run-rate revenue is a financial metric that estimates a company’s revenue over a full year by multiplying its monthly revenue by 12. While Cognition did not explain how it calculates this number, the growth highlights the company’s increasing financial strength. In April, another coding assistant called Cursor was in talks to raise capital at a $50 billion valuation. However, it later agreed to sell to SpaceX for $60 billion. At that time, Cursor had already surpassed $2 billion in annualized revenue. This means Cognition now has a higher revenue multiple—essentially, how much investors are willing to pay for each dollar of revenue—than Cursor did before its sale. Cursor’s decision to sell to SpaceX was partly due to severe limitations in computing resources, according to investors familiar with its financials. It remains unclear whether Cognition will face similar challenges. Cognition currently leases a high-powered server cluster from Nvidia, which costs hundreds of millions of dollars annually. This could result in a total cash burn of $800 million for the year, according to The Information. Like Cursor before its acquisition, Cognition is training its own AI model based on open-source alternatives. This strategy is expected to reduce long-term costs and bring the company closer to breaking even. The company is projected to reach $4 billion to $5 billion in annualized revenue by the end of 2026, compared to Cursor’s earlier goal of surpassing $6 billion by year-end.