Cognition, the developer of the AI coding assistant Devin, has raised $2 billion in funding, valuing the company at $48 billion, according to a TechCrunch article. This latest round, led by prominent venture capital firms including Andreessen Horowitz and Accel, comes just four months after Cognition’s previous funding round, which valued the startup at $26 billion. The article notes that Cognition’s annualized run-rate revenue has grown from $492 million to $900 million during this period, although the methodology for calculating this metric is not specified.

The substantial valuation suggests that venture capitalists believe the AI coding assistant market is not destined to be dominated by a single winner. The article draws a comparison with Cursor, another AI coding assistant that was valued at $50 billion during funding discussions in April before being acquired by SpaceX for $60 billion. At the time, Cursor’s annualized revenue had surpassed $2 billion, indicating that Cognition currently commands a higher revenue multiple. However, the article also highlights potential challenges for Cognition, such as significant compute costs associated with leasing an Nvidia server cluster and the company’s strategy to develop its own models to reduce reliance on expensive third-party providers. Source

This is a summary. Read the original at techcrunch.com.