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AI Coding Startup Cognition in Talks to Raise at $40B Valuation, Report Says
AI coding startup Cognition, the maker of the AI coding agent Devin, is reportedly already in talks with investors to raise another funding round at a significantly higher valuation, just months after securing $1 billion at a $26 billion pre-money valuation in May 2026.
According to sources cited by Bloomberg, the new round could value the company at least $40 billion, contingent on reaching a $1 billion annualized revenue run rate.
At the time of its last funding announcement in May, Cognition’s CEO Scott Wu confirmed to TechCrunch that the company had achieved a $492 million annualized revenue run rate, with enterprise usage of Devin growing 50% month-over-month for six consecutive months.
Wu, a renowned programming prodigy, has emphasized that Devin is not positioned as a replacement for human developers. Instead, the agent is often deployed for long-tail, tedious tasks that many programmers dislike, such as updating legacy software or migrating applications between platforms. This focus on practical, low-level automation has driven significant adoption among enterprises, with customers including Mercedes-Benz, NASA, and Goldman Sachs.
The reported $40 billion valuation—nearly double its May figure—reflects the explosive growth in the AI coding market as enterprises increasingly seek to automate software development workflows. As of late 2026, the sector remains highly competitive, with major players like GitHub Copilot and OpenAI’s Codex also vying for market share, but Cognition’s rapid revenue growth and enterprise focus have positioned it as a standout.
The talks are reportedly at an early stage, and no deal has been finalized. Cognition has not publicly commented on the Bloomberg report.