Cognition AI in talks for new funding at $40 billion valuation, annualized revenue near $1 billion
Cognition AI disclosed on August 13 it is negotiating a new funding round at a $40 billion target valuation, a 54% increase from the $26 billion May round. Annualized revenue run rate approaches $1 billion.
Bloomberg reported on August 13 that AI coding agent company Cognition AI (behind Devin) is negotiating a new funding round of over $1 billion at a target valuation above $40 billion, a roughly 54% increase from the $26 billion valuation in May. Cognition's annualized revenue run rate approaches $1 billion, doubling its financial performance over the past three months.
The implied valuation multiple is about 40x revenue, down from 52x in the previous round. The round is backed by General Catalyst, Founders Fund, and other institutions.
Devin is an autonomous software engineering assistant that can independently handle complex development tasks: understanding requirements, breaking down tasks, writing code, testing, and iterating. Cognition was founded in 2023 by Scott Wu, Steven Hao, and Walden Yan. Devin's enterprise usage grew 50% month-over-month this month, with marquee customers including Mercedes-Benz, NASA, and Goldman Sachs.
The funding marks further capital concentration in the AI coding tools space. Within the last ten days, Cognition, Lovable, and CodeRabbit all repriced: Cognition $26B to $40B, Lovable $13.2B to $13.3B (new $400M round confirmed), CodeRabbit joined the unicorn club at $1.5B. The AI coding stack now exceeds $110 billion in cumulative valuation.