SAN FRANCISCO, Aug 13: Artificial intelligence startup Cognition is reportedly exploring a new funding round that could value the company at around $40 billion, highlighting the rapid growth of investor interest in AI-powered software development.
Cognition, the company behind AI coding agent Devin, is in discussions with investors for a potential capital raise, according to reports. The proposed valuation would represent a substantial increase from the $26 billion figure attached to the company’s previous funding round.
The development comes as AI coding platforms attract growing attention from businesses seeking to automate parts of software development. These systems can generate code, identify errors and assist developers with tasks that traditionally required substantial manual effort.
Cognition has positioned Devin as an AI software engineer capable of handling coding assignments and working through multiple stages of development. The company has continued expanding the platform’s capabilities as competition intensifies across the AI coding sector.
The reported valuation discussions also reflect the broader enthusiasm surrounding so-called AI agents, which are designed to perform multi-step tasks rather than simply respond to individual user prompts.
Cognition’s potential fundraising would follow a series of major investments in AI companies during 2026. The sector has seen investors place increasingly large bets on startups developing AI infrastructure, coding assistants and autonomous software agents.
The reported $40 billion target remains subject to negotiations and could change depending on the final terms of any investment.
The latest development underscores how quickly valuations are rising for companies building AI tools aimed at transforming the way software is created and maintained.