AI coding startup Cognition reportedly already in talks to raise at $40B valuation
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- Cognition is in talks with investors for a new funding round that could value the company at $40B, according to Bloomberg sources
- The $40B target is contingent on achieving a $1B annualized revenue run rate
- Cognition raised $1B at a $26B valuation just three months ago in May
- At the time of its last raise, Devin had a $492M annualized revenue run rate, with enterprise usage growing 50% month-over-month for six consecutive months
- Scott Wu has said Devin is positioned as handling grunt-work like legacy modernization and platform migrations, not replacing human programmers
- Named customers include Mercedes-Benz, NASA, and Goldman Sachs
Why it matters: The $40B valuation jump from $26B in just three months hinges on Cognition roughly doubling its annualized revenue from $492M to $1B. For enterprise customers like Goldman Sachs and NASA, Devin's positioning around IT grunt-work rather than programmer replacement is the wedge driving 50% month-over-month growth — and the basis investors are underwriting the escalation.
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