Cognition AI In Talks For $40 Billion Valuation
Quick Reads
- Cognition AI, maker of coding agent Devin, is in early talks that could value it at $40 billion+, up over 50% from its last round.
- The startup raised $1 billion at $26 billion just three months ago; its revenue has since nearly doubled.
- Clients like Goldman Sachs and Palantir are fueling enterprise demand for Cognition’s AI coding tools amid fierce investor interest.
Cognition AI is in early talks with investors that could push its valuation to at least $40 billion, according to people familiar with the matter, marking a jump of more than 50% in under three months.
Funding Talks Signal Investor Appetite for AI Coding Agents
The San Francisco-based startup, maker of the autonomous coding agent Devin, last raised over $1 billion at a $26 billion valuation in May 2026, a round led by Lux Capital, General Catalyst, and 8VC. Should the new Cognition AI valuation talks close near $40 billion, it would represent one of the steepest short-term valuation climbs among venture-backed AI firms this year.
People familiar with the discussions say prospective investors are moving quickly to secure exposure to one of the sector’s fastest-growing names. Cognition’s annualized revenue run rate is now approaching $1 billion, roughly double the figure it reported during its last financing round, underscoring accelerating enterprise adoption of its AI software engineering tools.
Founded by Scott Wu, Cognition built its reputation on Devin, pitched as an autonomous AI software engineer capable of writing, testing, and debugging code with minimal human oversight. The company deepened its market position last year by acquiring the remaining assets of Windsurf, a rival AI coding platform, after Google’s acqui-hire of much of Windsurf’s leadership team.
Enterprise clients reportedly using Cognition’s tools include Goldman Sachs, Cisco, Palantir, and Mercado Libre, reflecting broader corporate appetite for AI-assisted software development as coding agents increasingly compete with traditional engineering workflows.
The talks remain in early stages, and terms could still change substantially before any deal is finalized or officially announced. Neither Cognition nor its prospective backers have publicly commented on the discussions so far.
