AI coding company Cognition, the developer behind the AI programming agent Devin, has reached about $900 million in annualized revenue. That equals roughly $75 million in monthly revenue, more than triple where the company stood at the start of the year, and the pace is still accelerating. Cognition is raising a new funding round that could value it at approximately $45 billion, up from a $26 billion valuation in May, when it disclosed annualized revenue of $492 million. That puts the latest revenue figure about 83% higher in roughly three months.
The rapid growth is expensive. The Information reported Cognition could burn about $800 million this year, with $200 million consumed in the second quarter alone. Much of the spending is on compute: the company rents large-scale Nvidia server clusters to run Devin and train its own models, costing hundreds of millions of dollars a year. Cognition's enterprise gross margin is close to 50%, and excluding model-training costs it is near breakeven. Management sees annualized revenue exceeding $1.5 billion by year-end and reaching $4 billion to $5 billion next year.
The company behind the AI coding agent Devin has pushed its annualized revenue to roughly $900 million. Cognition's current run rate, about $75 million in monthly revenue, is more than three times where it stood at the start of the year. Growth is still accelerating, and the startup is raising another round that could value it at about $45 billion.
Three months ago, the picture was different. When Cognition raised money in May, it reported $492 million in annualized revenue and a $26 billion valuation. The latest figure is about 83% higher.
The expansion does not come cheap. The Information reported that Cognition could burn around $800 million in cash this year, including roughly $200 million in the second quarter alone. A large share of that goes to computing power. Cognition rents large-scale Nvidia server clusters to run Devin while also training its own models; those servers cost hundreds of millions of dollars annually.
On an operating basis, Cognition's enterprise business carries a gross margin close to 50%. Strip out spending on proprietary model training, and the company is close to not burning cash. Management projects annualized revenue will exceed $1.5 billion by the end of the year and climb to $4 billion-$5 billion next year.
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