A new round could see Cognition’s valuation jump by more than 50pc as its annualised revenue run rate nears $1bn.

Cognition AI is reprtedly in early talks with investors for a new funding round that could push the coding start-up’s valuation up by more than 50pc, to at least $40bn.

The talks come less than three months after Cognition closed a $1bn round at a $26bn valuation, with its annualised revenue run rate now nearing $1bn, roughly double where it stood at that last raise.

Any new round would be expected to bring in more than $1bn, though Cognition may ultimately decide not to raise at all, or to seek different terms, a source told Bloomberg.

Founded in 2023, Cognition built its reputation on Devin, an AI agent designed to work through real engineering tasks rather than just suggest code. Devin can read through a codebase, draft a plan, write the code, run tests and fix its own mistakes, largely without a developer sitting over its shoulder, an approach the company brands as an “AI software engineer” rather than a coding assistant.

We reported on Cognition’s rapid rise in August 2025, when it closed a $500m round led by Peter Thiel’s Founders Fund that brought its valuation to near $10bn. That came weeks after it acquired rival start-up Windsurf, following the departure of Windsurf’s founders and research leads to Google in a $2.4bn licensing deal. Current backers include General Catalyst, Khosla Ventures, Pear VC and 8VC, alongside Founders Fund.

A round at $40bn or above would put Cognition ahead of the valuation Cursor secured on private markets before SpaceX’s agreement to acquire it, a deal expected to close as soon as this week. Cursor had previously been valued at $29.3bn, and was in talks to raise at $50bn in March, after hitting $2bn in annualised revenue a month earlier.

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