Cognition in talks to raise at $40B valuation

Cognition, the maker of AI coding agent Devin, is in talks to raise a new funding round that would value the company at at least $40 billion, Bloomberg reported on August 12, 2026.

The startup raised $1 billion at a $26 billion valuation in May 2026. The new round is tied to Cognition reaching a $1 billion annualized revenue run rate, according to Bloomberg sources.

When the May round was announced, CEO Scott Wu, a well-known programmer, told TechCrunch that Cognition had a $492 million annualized revenue run rate. Enterprise use of Devin was growing 50% month-over-month for the prior six months, he said.

Wu has said Devin is not sold as a human replacement. The agent is used for long-tail grunt work many programmers dislike, such as updating old software or migrating applications between platforms. The company’s customers include Mercedes-Benz, NASA and Goldman Sachs.

The reported talks signal investor confidence in AI coding agents as a major enterprise software category, though no deal has been finalized.