Cognition raises over $1B and values company at $25B

In short: Cognition, the company behind the AI coding tool Devin, says it raised more than $1 billion at a $25 billion pre-money valuation.

What happened

Cognition announced it has raised over $1 billion in new funding. The company makes Devin, an “autonomous AI software engineer,” which is an AI tool that can help write and change computer code (the instructions that make apps and websites work).

Cognition said the funding values the company at $25 billion before the new money is added. This is called a “pre-money valuation,” which is basically the price tag investors agree on before they invest. The company’s last major funding round, a $400 million raise in September, valued it at $10.2 billion after the money was added.

The new round was led by Lux Capital and General Catalyst, according to Cognition. The company also said existing investors, including Founders Fund and 8VC, joined in, along with new investors such as Ribbit Capital, Atreides, and Layer Global.

Cognition also shared business numbers. It said it has reached $492 million in annualized revenue run rate, which is an estimate of yearly revenue based on recent results (like taking one month’s pace and projecting it across a year). It also said enterprise usage of Devin has grown 50% month over month for the past six months, and that customers include Mercedes-Benz, NASA, Goldman Sachs, and Santander.

Why it matters

This deal shows that investors still think there is room for independent companies focused on AI tools for programming, even as big AI firms like OpenAI, Anthropic, and Google offer their own coding assistants.

Source: TechCrunch AI