AI coding startup Cognition reportedly already in talks to raise at $40B valuation
TechCrunch Julie Bort ● Covered by 2 sources
Rumor — unconfirmed reporting.
Cognition is reportedly talking to investors again, this time at a $40B valuation. The leap hinges on hitting $1B in annualized revenue, after a $26B raise in May.
Based on reporting by TechCrunch, Julie Bort — read the original for the full story.
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Cognition, the company behind the AI coding agent Devin, is already back in fundraising mode. According to sources cited by Bloomberg, it’s discussing a new round that could value the startup at least $40 billion, a sharp step up from the $26 billion price tag it got just three months ago when it raised $1 billion.
The new number is tied to a pretty specific milestone: a $1 billion annualized revenue run rate. That’s the bar Bloomberg’s sources say investors are looking at. It’s also a big jump from what Cognition itself said in May, when Scott Wu told TechCrunch the company had reached a $492 million annualized revenue run rate.
Wu also said then that enterprise usage of Devin had been growing 50% month over month for six straight months. And he was careful to say the product is not meant to replace humans. Instead, he described Devin as the thing that handles the dull, sticky work programmers tend to avoid: bringing older software up to date or moving apps from one platform to another.
That framing seems to be part of why enterprises have latched on. Cognition says its customers include Mercedes-Benz, NASA and Goldman Sachs. For a coding agent that started out as a much-hyped tool, the pitch has settled into something more practical: not magic, just labor that nobody wants to do.
My take — AI-written commentary, not fact-checked reporting
This is the kind of valuation sprint that only makes sense when investors decide revenue is destiny and everything else can wait. Cognition’s real advantage isn’t that Devin writes code; it’s that it does the chores people tolerate until they can’t. That’s a much better business than the usual robot-coder fan fiction, and probably why the money keeps showing up.
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