Cognition Hits $48B Valuation | Tech News

0:00On September 8th, yo, so check it. This AI startup called Cognition, the ones with that coding assistant Devon, just pulled in a massive 2 billion dollars. And get this, their valuation is now a staggering 48 billion dollars. This comes just 4 months after their last funding round, where they were valued at 26 billion. Big players like Andreson Horowitz and Excel are backing this move, showing they still see major potential in AI for coding. This wild is that since May, Cognitions annualized revenue run rate has jumped from about 500 million to 900 million dollars. Now they didn't break down exactly how they figure that number, but that's a serious uptick. It tells you the market is hungry for these tools. Remember Cursor, another coding assistant. They were talking about raising money at a 50 billion dollar valuation back in April, but then SpaceX swooped in and bought them for 60 billion. At that time, Cursor was already pulling in over 2 billion in annualized revenue.

1:02So, Cognition is actually commanding a higher revenue multiple right now than Cursor was before the SpaceX deal. Now, the word on the street is that Cursor ended up selling to SpaceX partly because they were running into serious compute power limitations. It's still up in the air if Cognition will face the same kind of bottlenecks, especially since they're leasing a huge Nvidia server cluster that costs hundreds of millions annually. Some reports suggest their total cash burn could hit 800 million this year, but here's the play. Cognition is building its own AI model, similar to what Cursor was doing before the acquisition. By relying less on expensive third party AI models, their aim means to cut costs and get closer to profitability. They're projected to hit 4 to 5 billion in annualized revenue by 2026, which is a strong forecast, even with the compute costs. It's definitely interesting to see Andreessen Horowitz, a big Cursor investor, now backing a competitor. I'm Corey with the story, and you've been listening to Tech News today, AI Power Technology

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