AI coding startup Cognition, the company behind the popular AI software engineer Devin, is reportedly in early discussions with investors for another major funding round that could value the company at around $40 billion. The potential deal comes just months after Cognition raised $1 billion at a valuation of about $26 billion, highlighting just how quickly investor interest in AI coding technology is growing.
According to sources cited by Bloomberg, the new funding round could be based on Cognition reaching an annualized revenue run rate of approximately $1 billion. If completed at that level, the deal would represent a significant jump from the company’s previous valuation and further position Cognition among the most closely watched AI startups in the rapidly expanding artificial intelligence market.
The reported fundraising comes only three months after Cognition’s last major investment. At the time, CEO Scott Wu revealed that the company had reached a $492 million annualized revenue run rate. He also said enterprise usage of Devin had been increasing by about 50% month-over-month for six consecutive months, suggesting that businesses are increasingly turning to AI agents to handle software development tasks.
Unlike the idea of AI completely replacing programmers, Wu has emphasized that Devin is designed to work alongside human developers. The AI coding agent is particularly useful for time-consuming tasks that programmers often avoid, including updating older software and migrating applications from one platform to another. That practical approach may be helping Cognition attract companies looking for ways to increase engineering productivity without removing humans from the development process.
Cognition’s growing customer base is another reason investors appear to be paying close attention. The company says organizations including Mercedes-Benz, NASA, and Goldman Sachs are among its customers. With revenue reportedly climbing rapidly and enterprise adoption continuing to expand, a potential $40 billion valuation would mark another dramatic step for Cognition—and another sign that investors are betting heavily on AI-powered software development.
source: techcrunch
