AI Coding Startup Cognition Hits $1 Billion in Annualized Revenue

Cognition AI Inc. is on track to generate annualized revenue of $1 billion based on its performance this month, according to a person familiar with the matter, roughly doubling the artificial intelligence coding startup’s run rate from about four months prior.The company said in September that its run-rate revenue, which is a projection of a company’s annual sales based on a shorter period of time, topped $900 million, fueled by demand for its Devin AI coding software. It had previously generated $492 million in annualized revenue as of May. Cognition is part of a growing crop of AI companies catering to the lucrative market for services that streamline the process of writing and debugging code. Investor interest in Cognition picked up earlier this year after Elon Musk’s SpaceX announced it could acquire competitor Cursor for $60 billion, Bloomberg has reported. That deal closed in August. SpaceX has also previously approached Cognition about a potential acquisition. Cognition declined to comment on the latest financials. The person spoke on condition of anonymity as the information is not public. Earlier this month, Cognition said it raised $2 billion in a new round of funding that vaulted its valuation to $48 billion, up from $26 billion roughly three months earlier. The startup’s customers include Nvidia Corp., Citigroup Inc. and Mercedes-Benz Group AG.