DeepWatch AI News reports that AI programming company Cognition has received a new round of funding offers, with investors valuing the company at a staggering $70 to $80 billion—surpassing even the implied equity valuation of $60 billion when SpaceX acquired Cursor.

On September 8, Cognition raised over $2 billion at a $48 billion valuation. Just seven weeks later, the highest offer has increased by 67%. The company is considering another fundraising round before year-end, though no decision has been finalized yet.

Cognition's core product, Devin, has evolved from assisting with code writing to autonomously executing software engineering tasks. After acquiring Windsurf last year, it also gained an AI code editor and enterprise sales channels. At acquisition, Windsurf already had over 350 enterprise clients. Cognition’s annualized revenue grew from $492 million in May to over $1 billion by September, with clients including NVIDIA, Citigroup, and Mercedes-Benz.

Yet compared to Cursor, Cognition still appears overvalued. Cursor achieved an annualized revenue of approximately $4 billion in June—nearly four times that of Cognition. Despite this, Cognition is now receiving higher valuations. Based on a $1 billion annualized revenue estimate, its valuation equates to 70 to 80 times revenue.

Moreover, after being acquired by SpaceX, Cursor can leverage SpaceX’s GPU clusters; Cognition, meanwhile, spends hundreds of millions annually renting NVIDIA servers and trains its own programming models based on open-source foundations, potentially consuming up to $800 million in cash this year.

Insiders say that excluding investments in self-developed models, Cognition’s free cash flow is nearly break-even. Ironically, this very investment is precisely how Cognition aims to reduce its reliance on OpenAI and Anthropic models.