Talks reported at record valuation
Cognition, the startup behind the AI coding tool Devin, is in talks to raise new funding at a $40 billion valuation, according to a report from TechCrunch. The company has not confirmed the talks. If the round goes through, it would place Cognition among the most valuable AI startups in the world.
Devin is an AI assistant that can write, test and fix software code. The tool automates many tasks that human engineers do by hand. Since its launch, Devin has drawn attention from developers, large enterprises and investors who believe AI will change how software is built.
Why investors are betting on AI coding
Coding tools have become one of the hottest areas in artificial intelligence. Companies like GitHub, OpenAI and Google have all released AI assistants for programmers. Investors say these tools can save companies money by letting smaller teams ship software faster.
The market for AI coding is still young. Many tools struggle with complex, real-world codebases and still need human oversight. But the potential is large: software development is a multi-hundred-billion-dollar industry, and even small efficiency gains are worth a lot.
What a new round would mean
A $40 billion valuation would mark a steep climb for Cognition. The startup was valued in the single-digit billions just a year ago. The reported talks come at a time when capital is flooding into AI companies, with several rivals also raising at multi-billion-dollar valuations.
Neither Cognition nor its investors have commented on the report. A formal announcement, if it comes, would likely arrive in the coming weeks.