Cognition AI, the San Francisco-based startup behind autonomous coding agent Devin, is reportedly in early discussions to raise more than $1 billion at a valuation of at least $40 billion, according to people familiar with the talks. The potential financing would mark another significant increase in the company’s value only months after its latest major funding round and would reinforce investor enthusiasm around AI-powered software development platforms. If completed on the reported terms, the deal would place Cognition among the most highly valued private artificial intelligence companies globally.
Rapid Valuation Growth
The discussions come less than three months after Cognition announced on May 27 that it had raised more than $1 billion at a $26 billion valuation in a financing led by Lux Capital, General Catalyst, and 8VC. A new round at $40 billion or more would represent an increase of more than 50% from that valuation within a relatively short period, reflecting the rapid growth investors are assigning to leading AI coding businesses. The discussions remain preliminary, meaning the final amount raised, valuation, investor participation, and timing could still change before any transaction is completed.
Revenue Approaches $1 Billion
Cognition’s reported financial performance appears to be supporting the higher valuation under discussion, with people familiar with the company saying its annualized revenue is approaching $1 billion. That figure would be approximately double the level cited around its previous financing, while Cognition had previously disclosed that its revenue run rate had reached $492 million and enterprise usage had increased more than tenfold since the beginning of 2026. The acceleration suggests that companies are increasingly deploying AI coding agents within production engineering environments rather than limiting their use to smaller experiments or individual developers.
Devin Expands Across Enterprises
Founded in 2023 by Scott Wu, Steven Hao, and Walden Yan, Cognition developed Devin as an AI software engineering agent capable of handling multiple stages of the development process with a high degree of autonomy. According to the company, Devin can plan, write, test, and ship production code, allowing engineering teams to delegate complex development tasks while maintaining oversight of the work performed by the system. Cognition has said major enterprises including Citi, Mercedes-Benz, Goldman Sachs, Dell, and Santander use the product, highlighting its push toward large corporate customers and broader adoption of AI-assisted engineering workflows.
Windsurf Acquisition Strengthens Platform
Cognition has also expanded its product portfolio through acquisitions, signing a definitive agreement in July 2025 to acquire Windsurf, an integrated development environment company focused on AI-assisted software development. The transaction brought Windsurf’s intellectual property, product, trademark, brand, and business into Cognition’s platform, extending the company beyond a standalone coding agent and giving it a broader presence across the developer workflow. That expansion comes as competition intensifies among AI coding providers, with companies seeking to combine autonomous agents, development environments, and enterprise software tools into integrated platforms.
A financing at $40 billion or more would put Cognition above Cursor’s previous $29.3 billion private valuation and further illustrate the rapid escalation in valuations across the AI coding sector. Cursor had also reportedly discussed raising capital at a valuation of approximately $50 billion before its expected sale to SpaceX, underscoring the strategic value being assigned to companies building next-generation software engineering tools. If Cognition completes the proposed round, its rising revenue, expanding enterprise adoption, and broader platform strategy would position it as one of the most prominent private companies competing to define how AI is used in professional software development.
Source: Bloomberg