Cognition, the maker of AI coding agent Devin, is in early discussions with investors to raise more than $1 billion at a valuation of at least $40 billion, according to Bloomberg, as reported by TechCrunch on August 122,3,5. The round would represent a valuation increase of more than 50% from the $26 billion mark Cognition secured in May 2026, when it raised $1 billion1.
The valuation jump is underpinned by rapid revenue growth. Cognition's annualized revenue run rate is approaching $1 billion, roughly double the $492 million annualized rate the company reported at the time of its May fundraise three months ago. Scott Wu, Cognition's founder, told TechCrunch at the time of the last raise that enterprises were growing their usage of Devin by 50% month-over-month for the preceding six months.
The talks are early-stage, and Cognition could still walk away or negotiate different terms.
TechFundingNews calculated that the new round implies a revenue multiple of roughly 40x, down from around 52x at the $26 billion mark three months ago. ANALYSIS That compression suggests Cognition is growing into its valuation faster than investors are inflating it.
For context, Cursor, the AI coding tool built by Anysphere, was last valued at $29.3 billion against annualized revenue that had reached roughly $4 billion by June 2026, a multiple closer to 7x. ◆ Cognition commands a far higher premium per dollar of revenue than Cursor, reflecting investor expectations tied to the autonomous-agent model rather than the copilot paradigm.
The company counts Mercedes-Benz, NASA, and Goldman Sachs among its customers.
Wu has told TechCrunch that Cognition is not positioning Devin as a human replacement. The agent is typically tasked with long-tail work many programmers avoid, such as updating legacy software or migrating applications between platforms. ANALYSIS This positioning — targeting tedious maintenance tasks rather than core development — may help explain enterprise adoption velocity, as it reduces organizational resistance to deploying an autonomous coding agent.
The potential repricing comes amid intensifying competition in AI-assisted coding. Anthropic and OpenAI are both pushing further into coding agents, and SpaceX has agreed to acquire Cursor.