The US software company Cognition is reportedly negotiating a new funding round, according to a Bloomberg report – with a valuation of at least 40 billion dollars. This would be more than one and a half times the 26 billion dollars that the company was attributed in May 2026. Cognition is developing the AI programming assistant Devin, whose annual revenue has reportedly nearly doubled since then.
Valuation jumps significantly within three months
Just in May 2026, Cognition raised one billion dollars at a valuation of 26 billion dollars – after a ten billion dollar valuation in August 2025, following a round of 500 million dollars. With the current discussions, the company’s value would quadruple within a good year. The 40 billion dollar mark is independently unverified: it comes from sources familiar with the matter, which were initially reported by Bloomberg.
The discussions are still in the early stages, it is further stated there – Cognition could ultimately also forgo raising capital or negotiate other terms. A statement from the company is not yet available. Which investors could lead the current round is still open; even in the May round, none of the backers publicly claimed leadership. Should the valuation hold, Cognition would be significantly ahead of most competitors in the still young but rapidly growing market for autonomous programming agents – one of the currently most competitive fields in the AI industry.
Revenue and customer list drive interest
The anticipated valuation depends, according to Bloomberg, on whether Cognition achieves an annual revenue rate of one billion dollars. In May, this figure was still at 492 million dollars, according to company founder Scott Wu, while corporate clients increased their Devin usage by 50 percent monthly within six months. There is currently no exact revenue figure for August confirmed by Cognition itself – the figure of around one billion dollars in annual rate comes solely from Bloomberg’s report on the investor discussions. As TechCrunch reports, Mercedes-Benz, NASA, and Goldman Sachs are now among the customers.
According to Wu, Devin is not intended to replace developers but to take over unpopular routine tasks such as modernizing old software or platform changes. Cognition also received a boost from the acquisition of rival Windsurf, whose founders switched to Google as part of a 2.4 billion dollar licensing deal. Cognition secured the remaining Windsurf technology along with its customer base, while Google, in return, gained access to parts of the research. The deal expanded Cognition’s offering with a second widely used developer tool alongside Devin.
AI coding boom drives valuations across the industry
Cognition thus joins a growing list of private AI providers with valuation jumps. Just at the beginning of July, the chip provider SambaNova raised one billion dollars at an eleven billion dollar valuation, while Anthropic is reportedly preparing for an IPO with a valuation of 965 billion dollars. The corporate restructuring firm Thrive Holdings also secured two billion dollars this week for AI deployment in companies.
Investors such as Founders Fund, General Catalyst, Khosla Ventures, Pear VC, and 8VC have already been involved in earlier Cognition rounds. Unlike many foundation model manufacturers, Cognition points to specific, paying corporate clients rather than just user growth – an argument that further supports the high valuation jumps in the AI coding segment.
It will be crucial whether investors continue to grant a premium to the AI coding sector after several such valuation jumps or whether future rounds will be measured more against demonstrable revenue growth. If the deal is confirmed, Cognition would rise to become one of the highest-valued private AI providers outside the major foundation model manufacturers with around 40 billion dollars.
