Cognition Targets a New Round at $70–80 Billion After $48 Billion

Cognition is exploring a new funding round that could value the company between $70 billion and $80 billion, according to sources close to the matter. These discussions, still preliminary and subject to change, come just weeks after the announcement of a $2 billion round at a $48 billion valuation. The company, known for its AI coding agent Devin and backed by funds like a16z and Accel, aims to finalize the deal before the end of the year.

Heavy Comparisons and a Boiling Market

SpaceX recently acquired Cursor for $60 billion. In this context, a $75 billion valuation for Cognition is mentioned as plausible by comparison. The rapid rise in valuations highlights the strong interest from investors in AI coding, considered one of the most competitive segments in the artificial intelligence market. Companies in the sector are looking to offer coding agents capable of automating an increasing share of engineers' work, while investors are committing larger amounts to a small number of startups they believe can establish themselves.

Dispute with Factory AI and Denials from Cognition

Last month, Cognition found itself at the center of a public dispute with its rival Factory AI. The latter accused some Cognition employees of pretending to apply for jobs in order to gather information about its products, while blaming a former advisor of the company for meeting with Cognition officials. Both Cognition and the former advisor denied any attempts to obtain or transmit confidential information.

New Round in Preparation and Cognition's Identity

Cognition is receiving offers for a new funding round. According to sources close to the matter, the anticipated valuation is between $70 billion and $80 billion. These expressions of interest come just weeks after the announcement of a $2 billion round at a $48 billion valuation. The discussions are at an early stage and the valuation targets may evolve, but the company plans to close the deal before the end of the year. Founded in 2023 by Scott Wu, with Steven Hao and Walden Yan as co-founders, Cognition is based in San Francisco. It is best known for Devin, an AI coding agent designed to automate software engineering tasks, and counts among its investors a16z, Accel, Founders Fund, Khosla Ventures, Elad Gil, and Pear VC.