Cognition AI to raise $1B at $47B valuation
What's the story
Cognition AI, an artificial intelligence coding start-up, is on the verge of closing a new funding round that could push its valuation to around $47 billion. The company is looking to raise some $1 billion in this latest effort. However, the final amount could be higher due to strong demand for the round, with nearly $10 billion in investor interest received so far.
Business expansion
Cognition's revenue nearly doubled in 3 months
Just three months ago, Cognition was valued at $26 billion after a $1 billion raise. The start-up, known for its popular AI engineering agent Devin, has witnessed a massive revenue spike lately.
It now generates over $900 million in annualized revenue. Back in late May, the company had announced an annualized revenue of $492 million.
Market response
SpaceX's proposed acquisition of Cursor boosted investor interest
Investor interest in Cognition AI has grown this year, especially after SpaceX announced it could acquire competitor Cursor for $60 billion. The acquisition was finalized in August.
Last month, Scott Wu, the CEO of AI coding start-up Cognition, denied a report claiming that Elon Musk's SpaceX attempted to acquire his company.
The report was published by Bloomberg and cited anonymous sources familiar with the matter.