Cognition AI Hits $48B Valuation After $2B Round
Synopsis
Cognition AI, the company behind coding agent Devin, has raised $2 billion as its valuation nearly doubles from $26 billion in May.
AI coding startup Cognition AI has raised $2 billion in Series E funding at a $48 billion valuation, nearly doubling its valuation from the previous round in May.
The round was led by Andreessen Horowitz and Accel leading the round. Other investors included existing investors Founders Fund, General Catalyst and Avenir.
Revenue Nears $900 Million After May Funding
Cognition AI has announced a rise in its run-rate revenue from $492 million in May to nearly $900 million. Run-rate revenue is a pace based on the annualised revenue of the company.
The latest round comes on the heels of over $1 billion raised in May at a $26 billion post-money valuation. The valuation marked a significant rise from Cognition AI's $10.2 billion valuation following a $400 million raise in September 2025.
Cognition AI is a software-engineering agents company launched in 2024. The Devin product can be used to plan, write, test and deploy code with minimal human effort.
Cognition AI made another acquisition in 2025, that of Windsurf. At the time of the acquisition announcement, Windsurf had over 350 enterprise customers and annual recurring revenue of $82 million.
Gartner Puts Enterprise Coding Agent Spending at Up to $11 Billion
The new Cognition AI investment is part of the surge of enterprise investment in AI coding agents. According to Gartner 2026 Market Guide for Enterprise AI Coding Agents, the market is expected to cost the enterprise approximately $9.8 billion to $11 billion annually by April of 2026.
By 2027, more than 65% of engineering teams that employ agentic coding will consider integrated development environments (IDEs) as an option rather than an essential, Gartner said. IDEs are software programs that are commonly used by developers to write and manage code.
Cognition AI's latest investment comes on the heels of several high-dollar private market deals in the space. The company's valuation of $48 billion in September is up from $26 billion four months ago.
Source: Reuters
Pooja Malik is a business journalist with over six years of experience covering startups, entrepreneurship, and emerging trends. She has previously worked with leading media platforms such as YourStory Media and BW BusinessWorld, where she reported on business, policy, and market developments. Currently, she serves as Editor at The Inspirepreneur Magazine, where she writes and edits stories across business, lifestyle, and travel, with a focus on clarity, accuracy, and reader relevance.
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