Key Takeaways
- • Cognition, the AI coding startup behind the Devin coding agent, is weighing a new funding round at a $70 billion to $80 billion valuation, according to sources familiar with the matter cited by Business Insider.
- • The offers come just weeks after Cognition announced a funding round at a $48 billion valuation, implying a valuation increase of roughly 46% to 67% over that round.
- • Talks are early and valuation targets could still change, with a round being seriously considered before the end of 2026.
- • The reported valuation range is framed against SpaceX's acquisition of rival AI coding company Cursor for $60 billion a few months earlier.
- • Cognition is also involved in a public dispute with rival Factory AI, which alleged Cognition employees posed as job applicants to obtain product information; Cognition and the former Factory adviser denied that confidential information was sought or shared.
Summary
AI coding startup Cognition is weighing a new funding round at a valuation of between $70 billion and $80 billion, according to sources familiar with the matter reported by Business Insider. The startup has received offers at that range and is seriously considering a round before the end of the year, though the sources said the talks remain early and valuation targets could still change. The approach follows a round announced only weeks earlier at a $48 billion valuation.
Founded in 2023 by Scott Wu, Steven Hao, and Walden Yan, the San Francisco-based company is best known for Devin, an AI coding agent designed to automate software engineering tasks. Existing investors include a16z, Accel, Founders Fund, Khosla Ventures, Elad Gil, and Pear VC.
The reported valuation climb underscores intense investor interest in AI coding, which Business Insider describes as one of the most competitive segments of the AI market. Companies are racing to sell coding agents that can take on more engineering work, and investors are making increasingly expensive bets on the startups they believe could become leaders. Business Insider noted that a $75 billion valuation would not be far-fetched given that SpaceX acquired fellow AI coding company Cursor for $60 billion a few months earlier.
Last month, Cognition became involved in a public feud with rival Factory AI, which accused Cognition employees of posing as job applicants to seek product information and criticized a former Factory adviser for meeting with Cognition executives. Cognition and the former adviser denied that confidential information was sought or shared.
Founded in 2023 by Scott Wu, Steven Hao, and Walden Yan, the San Francisco-based company is best known for Devin, an AI coding agent designed to automate software engineering tasks. Existing investors include a16z, Accel, Founders Fund, Khosla Ventures, Elad Gil, and Pear VC.
The reported valuation climb underscores intense investor interest in AI coding, which Business Insider describes as one of the most competitive segments of the AI market. Companies are racing to sell coding agents that can take on more engineering work, and investors are making increasingly expensive bets on the startups they believe could become leaders. Business Insider noted that a $75 billion valuation would not be far-fetched given that SpaceX acquired fellow AI coding company Cursor for $60 billion a few months earlier.
Last month, Cognition became involved in a public feud with rival Factory AI, which accused Cognition employees of posing as job applicants to seek product information and criticized a former Factory adviser for meeting with Cognition executives. Cognition and the former adviser denied that confidential information was sought or shared.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.