Cognition seeks $40B valuation as AI coding agent Devin ramps revenue

Cognition, the startup behind the AI coding agent Devin, is in early-stage talks with investors about a new funding round that could value the company at $40 billion or more—a substantial jump from its May valuation of $26 billion, according to reporting by Bloomberg.

Revenue growth fuels valuation jump#

The proposed valuation correlates with Cognition's achievement of a $1 billion annualized revenue run rate, marking explosive growth in just a few months. When the company closed its previous $1 billion funding round in May, it had already reached a $492 million annual run rate—meaning it has roughly doubled revenue in roughly three months.

What Devin is being used for#

Rather than positioning Devin as a direct replacement for human developers, Cognition has emphasized the agent's role in handling unglamorous but necessary programming tasks. These include modernizing legacy codebases, migrating applications between platforms, and other repetitive technical work that many engineers find tedious. This positioning appears to have resonated with enterprises, which have expanded their Devin usage by 50% month-over-month for the past six months, according to founder Scott Wu.

The company counts Mercedes-Benz, NASA, and Goldman Sachs among its customer base—a lineup that underscores adoption across industries ranging from automotive to finance to aerospace.

The funding landscape for AI coding#

Cognition's rapid ascent reflects investor appetite for AI agents tailored to software development, a vertical where automation can demonstrably save time and cost. The company's path from a $26 billion valuation to a potential $40 billion in just a few months showcases how quickly revenue growth and market validation can shift investor perception in the AI space.