Startup Cognition in new funding talks at $40 billion value
Cognition would be expected to raise over $1 billion in the round, Bloomberg reported. The company may still decide not to raise capital, or seek financing with different terms. Founded in 2023, Cognition is backed by top venture firms including General Catalyst and Peter Thiel’s Founders Fund.
Cognition AI is reportedly in early negotiations with potential investors for a new funding round that could see the company's valuation soar by over 50% to at least $40 billion, according to sources familiar with the matter. Less than three months after raising $1 billion at a $26 billion valuation, the AI startup is now attracting interest from new backers seeking a stake in a leader in the rapidly growing AI coding sector.
The company's annualized revenue run rate is now nearing $1 billion, nearly double the figure from its previous financing, according to the sources. Cognition would likely seek to raise over $1 billion in the new round, but may opt not to raise capital or seek financing with different terms, the sources added. A representative for Cognition declined to comment.
The company's AI agent, Devin, automates engineering tasks and was developed by the AI firm founded in 2023. Backed by top venture firms like General Catalyst and Peter Thiel's Founders Fund, Cognition is part of a wave of AI companies focusing on coding. The sector's popularity is evident with SpaceX's recent acquisition of AI coding startup Cursor, a deal expected to close soon.
If Cognition opts to raise new funding at a valuation of $40 billion or higher, it would officially exceed the price paid for Cursor before its own acquisition.
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