Cognition, the San Francisco‑based AI coding startup behind the Devin coding agent, is reportedly already in discussions with investors about a new financing round that could lift its valuation to $40 billion. The talks come after the company closed a $1 billion round in May that set its valuation at $26 billion.
Sources familiar with the process, speaking to Bloomberg, say the next round will be anchored on Cognition achieving a $1 billion annualized revenue run rate. The firm currently reports an annualized revenue run rate of $492 million, a figure disclosed three months ago when Cognition announced its latest raise.
Scott Wu, Cognition’s co‑founder and a noted programmer, told TechCrunch at the time of the May raise that the company had seen enterprise usage of Devin climb 50 percent month‑over‑month for six consecutive months. Wu emphasized that Devin is not intended to replace human developers but to handle repetitive, long‑tail tasks such as modernizing legacy code or migrating applications across platforms. That positioning appears to be resonating with large organizations.
Among the company’s roster of customers are Mercedes‑Benz, NASA and Goldman Sachs. These high‑profile clients illustrate the growing acceptance of AI‑assisted development tools in sectors ranging from automotive engineering to aerospace and finance.
If the upcoming round proceeds as reported, Cognition would join a select group of AI‑focused startups that have breached the $10 billion valuation threshold. The potential $40 billion mark would place it alongside the likes of OpenAI and Anthropic, underscoring the market’s appetite for AI solutions that automate complex, knowledge‑intensive work.
Industry observers note that the valuation target hinges on Cognition’s ability to scale its revenue quickly. The company’s reported 50 percent month‑over‑month usage growth suggests strong demand, but sustaining that trajectory will require continued expansion of its enterprise sales pipeline and possibly new product features.
Investors appear keen to back the firm despite the lofty valuation. The previous $1 billion infusion attracted a mix of venture capital firms and strategic investors, signaling confidence in Cognition’s technology and market positioning.
While no timeline has been disclosed for the new round, sources indicate that the company is in “early‑stage” conversations, meaning the deal could materialize within the next few months. Cognition has not issued a formal comment on the reports.
The potential funding could fund further development of Devin, expand the company’s sales force, and accelerate entry into new verticals. It also raises the stakes for competitors in the AI‑coding space, who will need to differentiate their offerings as enterprises increasingly look to automate software development tasks.
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