Cognition, the firm behind the AI coding agent Devin, is reportedly in discussions to raise another funding round with a target valuation of $40 billion. This figure represents a significant increase from the $1 billion raise secured in May, which valued the company at $26 billion. Bloomberg sources suggest this new valuation depends on the business achieving a $1 billion annualised revenue run rate. Three months prior, co-founder Scott Wu confirmed the company had reached a $492 million run rate while seeing enterprise usage grow by 50% month over month over the last six months.
The valuation targets reflect confidence in Devin’s ability to handle specific programming tasks rather than replacing human developers entirely. The agent focuses on long-tail grunt work that many programmers dislike, such as updating legacy software or migrating applications between platforms. This niche approach has reportedly driven adoption among major clients including Mercedes-Benz, NASA, and Goldman Sachs. The company positions the tool as an assistant for tedious maintenance rather than a general replacement for engineering staff.
* The new valuation requires a $1 billion annualised revenue run rate
* Enterprise usage grew by 50% month over month for six months
* Key clients include Mercedes-Benz, NASA, and Goldman Sachs
