AI coding startup Cognition reportedly already in talks to raise at $40B valuation
Cognition may be looking to raise another mega round just a few months after raising $1 billion at a $26 billion valuation.
Cognition, the startup behind the AI coding agent Devin, is reportedly in discussions with potential investors to raise funds at a significantly higher valuation, following its May funding round of $1 billion at a $26 billion valuation. According to Bloomberg sources cited by Bloomberg, this upcoming round could potentially value the company at $40 billion, based on achieving an annualized revenue run rate of $1 billion.
In May, Cognition's co-founder and CEO, Scott Wu, revealed to TechCrunch that the company had reached an annualized revenue run rate of $492 million, with enterprises increasing their usage of Devin by 50% month-over-month for the past six months. Wu emphasized that Devin is not designed to replace human programmers, but rather to handle repetitive, tedious tasks that many programmers find unappealing, such as updating older software or moving applications from one platform to another.
This focus on handling low-level grunt work may explain the growing appeal of Devin among large enterprises, some of which include Mercedes-Benz, NASA, and Goldman Sachs.
Written by urgent.news from TechCrunch's reporting — not their text. Machine-written — it may contain errors, so check the original before relying on it.
