Cognition reportedly in talks to raise funding at a $40B valuation

In short: Cognition is reportedly already talking with investors about raising more money at a valuation of at least $40 billion.

What happened

Cognition is a startup that sells an AI coding agent called Devin. An “AI coding agent” is software that can help write and change computer code (like an assistant that takes on tasks a developer would otherwise do by hand).

TechCrunch reports, citing Bloomberg, that Cognition is in talks to raise another funding round. The discussions could value the company at $40 billion or more. Bloomberg’s sources said that valuation would be tied to Cognition reaching a $1 billion annualized revenue run rate, which is an estimate of yearly sales based on recent results.

The talks come only a few months after Cognition raised $1 billion in May at a $26 billion valuation. Around that time, Cognition CEO Scott Wu told TechCrunch the company had reached a $492 million annualized revenue run rate. He also said business customers were increasing their use of Devin by about 50% each month for the previous six months.

Wu has said Cognition is not selling Devin as a replacement for human programmers. Instead, it is often used for time-consuming “grunt work,” like updating older software or moving an app from one system to another. Cognition says customers include Mercedes-Benz, NASA, and Goldman Sachs.

Why it matters

Big funding talks like this are a sign that large companies are paying real money for tools that help maintain and update software. If these tools spread, they could change how quickly everyday services improve, like banking apps, car software, and government websites.

Source: TechCrunch AI