Cognition, the startup behind the coding assistant Devin, has raised $2 billion at a $48 billion valuation, signaling that venture capitalists believe there’s room for multiple major players in the AI coding market. Since its last funding round in May, Cognition’s annualized revenue has grown from $492 million to $900 million, indicating strong market traction.

Another coding assistant, Cursor, was valued at $50 billion in talks before selling to SpaceX for $60 billion, highlighting the lucrative nature of the market. Cognition, unlike Cursor, is training its own model, potentially reducing costs and improving efficiency.

The company is expected to reach $4 billion to $5 billion in annual revenue by the end of 2026, according to The Information. Despite this, Cognition’s major backers include a16z, the same firm that made a significant profit from Cursor’s sale to SpaceX. This suggests that the AI coding market remains a fertile ground for innovation and investment.

Founded by math prodigy Scott Wu, Cognition counts major enterprise clients such as Mercedes-Benz, NASA, Goldman Sachs, and Citi. The startup’s valuation and revenue growth demonstrate the significant interest and potential in AI coding assistants.