AI coding startup Cognition begins $40B+ valuation funding talks
Bloomberg reported on Aug 12: Cognition (Devin parent) in early investor talks for new funding at $40B+ valuation, with annualized revenue run-rate approaching $1B.
On August 12, sources told Bloomberg that Cognition AI has begun early investor discussions for a new funding round that could lift its valuation by more than 50% to at least $40 billion. This is less than three months after Cognition raised $1 billion at a $26 billion valuation in May 2026.
Cognition's annualized revenue run-rate is now approaching $1 billion, roughly double the figure it posted during its previous financing. Sources said the new round is expected to exceed $1 billion, though Cognition may still decide not to raise or to seek different terms. A Cognition representative declined to comment.
Cognition's product is Devin, an AI agent that automates engineering tasks including legacy code modernization, cross-platform migrations, and the low-glamour maintenance work programmers typically defer. Customers include Goldman Sachs, Mercedes-Benz, Citi, NASA, and U.S. Army and Navy units; May disclosures showed enterprise Devin usage growing 50% month-over-month for six consecutive months.
Coding has become one of AI's hottest verticals, with Anthropic, OpenAI, and SpaceXAI all dedicating substantial business resources to their own coding product lines. SpaceX has agreed to acquire AI coding startup Cursor, with the deal expected to close as soon as this week. If Cognition closes at $40 billion or above, it would officially surpass Cursor's $29.3 billion private valuation before the SpaceX acquisition.