AI Coding Startup Cognition Reportedly in Talks for New Funding Round at $40B Valuation

Cognition, the company behind AI coding agent Devin, is reportedly in early discussions with investors about a new funding round that could value the company at $40 billion, according to sources cited by Bloomberg. The potential valuation would be tied to Cognition reaching a $1 billion annualized revenue run rate, marking a significant jump from its previous round in May, when the company raised $1 billion at a $26 billion valuation.

At the time of that earlier raise, co-founder Scott Wu told reporters that Cognition had reached a $492 million annualized revenue run rate, with enterprise usage of Devin growing 50% month-over-month over the preceding six months. Wu, known for his background as a prominent young programmer, said Devin is not intended to replace human developers, but rather to handle repetitive, lower-priority engineering tasks that programmers often avoid, such as modernizing outdated software or migrating applications between platforms.

That positioning appears to be resonating with enterprise customers, which Cognition says include Mercedes-Benz, NASA, and Goldman Sachs. The reported new funding talks would represent a substantial valuation increase in a short period, reflecting continued investor enthusiasm for AI coding tools amid rapid enterprise adoption across major companies.

Featured image: Credit: Cognition

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