Coding start-up Cognition eyes $40bn valuation in new round – Bloomberg

Cognition AI, a coding startup, is reportedly in early talks with investors for a new funding round that could increase its valuation by more than 50%, reaching at least $40bn. The talks follow its recent $1bn funding round at a $26bn valuation, where its annualised revenue run rate had reached nearly $1bn, roughly double its previous figure.

Cognition was founded in 2023 and gained recognition with its AI agent, Devin, which can autonomously work through engineering tasks, including drafting plans, writing code, running tests, and fixing errors. This approach, described as an "AI software engineer," distinguishes Cognition from traditional coding assistants. Cognition's rapid growth was highlighted in August 2025 when it closed a $500m funding round led by Peter Thiel's Founders Fund, pushing its valuation near $10bn.

Following this, Cognition acquired rival start-up Windsurf, with the founders and research leads joining Google in a $2.4bn licensing deal. Current investors include General Catalyst, Khosla Ventures, Pear VC, and 8VC, along with Founders Fund. Achieving a valuation above $40bn would place Cognition ahead of Cursor, which secured a valuation of $29.3bn in private markets before SpaceX's acquisition, expected to be finalized this week.