Startups & Funding
Cognition reportedly in talks to raise at $40B valuation, up from $26B in May
AI coding startup Cognition is reportedly in talks to raise new funding at a valuation of at least $40 billion, months after raising $1 billion at $26 billion.
Cognition, the maker of AI coding agent Devin, is reportedly already talking to investors about a new funding round that would mark a big jump in valuation, according to sources cited by Bloomberg. The startup raised $1 billion at a $26 billion valuation in May.
The new round could deliver at least a $40 billion valuation, contingent on Cognition achieving a $1 billion annualized revenue run rate, the sources said.
Three months ago, when Cognition announced its last raise, Scott Wu confirmed to TechCrunch that the company had reached a $492 million annualized revenue run rate, with enterprise usage of Devin growing 50% month-over-month over the prior six months.
Wu, a widely known wunderkind programmer, told TechCrunch that Devin is not being pitched as a replacement for human engineers. Instead, the agent is often assigned the long-tail grunt work many programmers dislike, such as updating aging software or migrating applications from one platform to another — work that could account for much of its growing adoption among enterprises. Cognition says its customers include Mercedes-Benz, NASA, and Goldman Sachs.
Why it matters
A valuation jump from $26 billion to a potential $40 billion in a matter of months, driven by revenue growth rather than hype alone, would make Cognition one of the fastest-scaling AI coding startups and intensify competition for enterprise coding-agent budgets.