AI startup Cognition in new funding talks at $40 billion value

Cognition AI is in early talks with investors for a new funding round that may boost the coding startup’s valuation by more than 50% to at least $40 billion, people familiar with the matter said.

Prospective investors are circling the company less than three months after the AI firm raised $1 billion at a $26 billion valuation, the people said, asking to remain unidentified to talk about a private deal. The potential backers are seeking to secure a slice of a leading player in one of the industry’s hottest spheres. The company’s annualized revenue run rate is now approaching $1 billion, roughly double the figure the firm posted during its previous financing, the people said.

Cognition would be expected to raise over $1 billion in the round, one of the people said. The company may still decide not to raise capital, or seek financing with different terms, the people said. A Cognition representative declined to comment.


Cognition sells an AI agent called Devin that helps automate engineering tasks. Founded in 2023, it’s backed by top venture firms including General Catalyst and Peter Thiel’s Founders Fund.

Coding has become perhaps the hottest area of AI, with Anthropic PBC, OpenAI and SpaceX dedicating large chunks of their businesses to their own engineering products. SpaceX agreed to acquire AI coding startup Cursor this year, in a deal expected to close as soon as this week.

If Cognition chooses to raise new funding at a valuation of $40 billion or more, the company would officially surpass the price tag Cursor secured on private markets before the SpaceX deal. Cursor had previously been valued at $29.3 billion, but was in talks to raise capital at a $50 billion valuation in March after hitting $2 billion in annualized revenue a month prior.