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Cognition reportedly in talks for $40B valuation, up from $26B

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Cognition reportedly in talks for $40B valuation, up from $26B

Cognition, the company behind the AI coding agent Devin, is reportedly already in talks with investors about a new funding round with a big jump in valuation. That comes just three months after it raised $1 billion at a $26 billion valuation in May. According to sources cited by Bloomberg, the new round could deliver at least a $40 billion valuation, contingent on Cognition achieving a $1 billion annualized revenue run rate. Three months ago, when the last raise was announced, Cognition's Scott Wu told TechCrunch that the company had reached a $492 million annualized revenue run rate and that enterprise usage of Devin had been growing 50% month over month for six straight months. Wu, described as a wunderkind programmer in his own right, also said Devin is not being marketed as a replacement for human engineers. Instead, the agent is often assigned long-tail grunt work that programmers tend to avoid, such as updating old software or moving applications from one platform to another, which TechCrunch suggests may explain much of its growing pull with enterprise customers. Cognition says its customer roster includes Mercedes-Benz, NASA and Goldman Sachs.

Key facts

  • Cognition is reportedly already talking to investors about a new round, per sources cited by Bloomberg, three months after raising $1 billion at a $26 billion valuation in May.
  • The new round could deliver at least a $40 billion valuation, contingent on Cognition hitting a $1 billion annualized revenue run rate.
  • Three months ago Scott Wu told TechCrunch that Cognition had a $492 million annualized revenue run rate and that enterprise usage of Devin grew 50% month over month for six months.
  • Wu said Devin is not sold as a human replacement; it is often used for long-tail work like modernizing old software or migrating applications between platforms.
  • Cognition lists Mercedes-Benz, NASA and Goldman Sachs among its customers.

Why it matters

A jump from a $26 billion valuation to a reported $40 billion target in just three months, if it happens, would mark one of the fastest valuation climbs in the current AI boom and underscores how much investor appetite there is for AI coding agents specifically, on top of general-purpose AI models.

Who it affects

It matters most to Cognition's existing and prospective investors, who would be pricing the new round, and to enterprises already using or evaluating Devin, since a valuation this size signals the company expects to keep growing fast rather than plateau after its May raise.

How to use it

Cognition positions Devin not as a substitute for engineers but as a way to offload long-tail, unglamorous engineering work: bringing legacy software up to date or migrating applications from one platform to another. Named enterprise customers such as Mercedes-Benz, NASA and Goldman Sachs suggest this pitch is landing with large, complex organizations rather than only startups.

How solid is it

The $40 billion figure comes from sources cited by Bloomberg, not from Cognition itself, and the talks are described as already underway rather than concluded. The revenue figures and usage-growth numbers, by contrast, come directly from Scott Wu's on-the-record statements to TechCrunch three months ago, giving those specific data points a firmer footing than the reported valuation target.

Risks and caveats

No timeline for closing the round and no investor names have been reported, and the $40 billion figure is explicitly tied to Cognition first reaching a $1 billion annualized revenue run rate, more than double the $492 million run rate it had three months ago. Talks at this stage can change terms or fall through before any deal is signed.