AI coding startup Cognition is weighing a new funding round at a $70 billion to $80 billion valuation
The potential jump in valuation and investor interest underscores the frenzy around AI coding.
AI coding startup Cognition is currently negotiating with potential investors for a new funding round that could value the company between $70 billion and $80 billion, according to sources familiar with the situation. This is significantly higher than the company's most recent funding round, which closed at a $48 billion valuation in May.
Cognition, founded by Scott Wu, Steven Hao, and Walden Yan in 2023, is best known for Devin, an AI coding agent that automates software engineering tasks. The company's existing investors include notable names like a16z, Accel, Founders Fund, Khosla Ventures, Elad Gil, and Pear VC. The startup is considering a funding round before the end of the year amidst a wave of investor interest in AI coding, a highly competitive area of the AI market.
The rapid increase in Cognition's valuation highlights the intense competition among startups to develop AI coding agents that can handle more of the work engineers perform. Recent events have seen Cognition involved in a public dispute with rival Factory AI, though both parties deny any wrongdoing.
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