Cognition, the maker of the AI coding agent Devin, is reportedly discussing a new funding round that could push its valuation to $40 billion. This follows a $1 billion raise at a $26 billion valuation in May, according to Bloomberg sources. The potential valuation increase is tied to achieving an annualized revenue run rate of $1 billion, as reported by the news outlet. The company has seen strong growth in enterprise adoption of Devin, with usage increasing by 50% month-over-month for the past six months. Scott Wu, Cognition’s founder, confirmed to TechCrunch that the company had reached a $492 million annualized revenue run rate at the time of its last funding round. He also emphasized that Devin is not positioned as a replacement for human programmers but rather as a tool for handling repetitive, long-tail tasks that many developers find unappealing. Enterprises such as Mercedes-Benz, NASA, and Goldman Sachs have adopted Devin, according to the company. The agent is frequently used for tasks like updating legacy software or migrating applications between platforms. These activities have contributed to its growing appeal among businesses looking to streamline development processes. The company’s focus on automating tedious coding tasks has positioned it as a key player in the AI coding space. The recent funding discussions reflect the confidence investors have in Cognition’s trajectory and its ability to scale.
Source: techcrunch
