Cognition AI, a San Francisco-based startup behind AI coding agent Devin, is in early talks to raise more than US$1 billion at a valuation of at least US$40 billion, according to people familiar with the matter.

The talks come less than three months after Cognition said on May 27 that it had raised more than US$1 billion at a US$26 billion valuation in a round led by Lux Capital, General Catalyst, and 8VC.

Those people said Cognition’s annualized revenue is approaching US$1 billion, about double the level cited in that financing.

Cognition previously said its run rate had reached US$492 million, with enterprise usage up more than 10x since the start of 2026.

Founded in 2023 by Scott Wu, Steven Hao, and Walden Yan, Cognition said Devin can plan, write, test, and ship production code.

The company said enterprises including Citi, Mercedes-Benz, Goldman Sachs, Dell, and Santander use the product.

Cognition also signed a definitive agreement to acquire Windsurf in July 2025, adding the integrated development environment company’s intellectual property, product, trademark, brand, and business to the Devin platform.

If completed at US$40 billion or more, the new round would put Cognition above Cursor’s previous US$29.3 billion private valuation.

Cursor had also discussed raising at a US$50 billion valuation before its expected sale to SpaceX.

🔗 Source: Bloomberg