Few startups climb from one mega-round to the next as quickly as Cognition. Bloomberg reports the Devin maker is already talking to investors about a new raise that could value it at $40B or more, tied to hitting a $1B annualized revenue run rate.
The talks come barely three months after Cognition closed a $1B round at roughly a $26B valuation. Founder and CEO Scott Wu told TechCrunch in May that Devin had reached a $492M annualized revenue run rate, with enterprises expanding how much work they hand to the AI coding agent.
Investors keep pricing the AI software layer as if demand will compound for years. Devin focuses on the long-tail programming chores developers dislike, positioning it as a tool that boosts existing teams rather than a straight human replacement. That pitch helped it win big enterprise accounts, and the fresh valuation talk suggests backers believe the category still has room to run.
A $40B mark would put Cognition in a small club of privately valued AI companies, alongside model labs and infrastructure giants that have absorbed most of the sector’s capital so far. For coding tools specifically, it would tower over rivals, none of which have publicly confirmed a comparable private valuation.
The raise is still in early stages, and Bloomberg’s sources caution that terms can shift. But the direction is unmistakable: after a record first half for AI funding, the market’s next test is whether agentic coding startups can keep doubling their price tags while the products are still scaling.
