Cognition Reportedly Eyes $40 Billion Valuation in New Funding Round
Cognition is reportedly seeking funding at a $40 billion valuation, three months after raising $1 billion as Devin's revenue run rate targets $1 billion.
Summary
On August 12, 2026, Bloomberg sources said Cognition, maker of AI coding agent Devin, was discussing another funding round that could value it at least at $40 billion if annualized revenue reaches $1 billion. The talks come three months after Cognition raised $1 billion at a $26 billion valuation in May.
Programmer Scott Wu told TechCrunch after the May round that Cognition had reached a $492 million annualized revenue run rate, while enterprise use of Devin had increased 50% month over month for six consecutive months. Wu said Devin is not marketed as a replacement for programmers, but handles disliked, long-tail work such as modernizing legacy software and migrating applications between platforms. Cognition names Mercedes-Benz, NASA, and Goldman Sachs as customers.
Positives
- $492 million in annualized revenue run rate was confirmed by Scott Wu after Cognition's May funding round.
- 50% month over month enterprise usage growth continued for six consecutive months, according to Cognition.
- Mercedes-Benz, NASA, and Goldman Sachs are among Devin's customers, demonstrating adoption by major organizations.
- Devin handles legacy software updates and platform migrations rather than being marketed as a replacement for programmers.
Risks & concerns
- $40 billion depends on Cognition achieving a $1 billion annualized revenue run rate, more than double the $492 million confirmed in May.
- The new financing remains under discussion, with no completed deal disclosed in Bloomberg's report.
- $40 billion would represent a $14 billion valuation increase only three months after Cognition's $26 billion May round.
