AI coding startup Cognition reportedly in talks for $40B valuation
Cognition, maker of the AI coding agent Devin, is reportedly discussing a new funding round that could more than double its valuation to $40 billion, contingent on reaching a $1 billion annualized revenue run rate.
Cognition, the startup behind the AI coding agent Devin, is reportedly already in talks with investors about a new funding round, according to sources cited by Bloomberg. The company previously raised $1 billion in May at a $26 billion valuation.
The new round could push Cognition's valuation to at least $40 billion, contingent on the company reaching a $1 billion annualized revenue run rate.
Rapid growth
Three months ago, when announcing its last funding round, Cognition co-founder 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, known as a prodigy programmer himself, said Devin is not being marketed as a replacement for human developers. Instead, the agent is typically assigned long-tail, tedious work that programmers tend to dislike, such as modernizing old software or migrating applications between platforms.
That approach may explain much of Devin's growing traction among enterprise customers. Cognition says its client list includes Mercedes-Benz, NASA, and Goldman Sachs.
