Cognition is in early talks to raise new funding at a valuation above $40 billion. That is the report from Bloomberg, published on August 12, 2026. The round would be more than $1 billion in size and would lift the company’s value by over 50 percent in less than three months. Nothing is closed yet, and the terms could still change.
Cognition makes Devin, an AI agent that works as an autonomous software engineer. Devin can plan, write, test, and ship code with little human input. The company also owns Windsurf, the AI coding tool it acquired in 2025.
The reported deal at a glance
| Detail | Info |
|---|---|
| Status | Reported, not closed |
| Target valuation | More than $40 billion |
| Previous valuation | $26 billion (May 2026) |
| Reported raise | More than $1 billion |
| Trigger | Approaching a $1 billion revenue run rate |
| Source | Bloomberg, August 12, 2026 |
If the round closes near $40 billion, Cognition would pass the valuation Cursor held in private markets before its deal with SpaceX. That would make Cognition one of the most valuable AI agent companies in the world.
Funding history
| Round | Date | Amount | Valuation | Lead investor |
|---|---|---|---|---|
| Series D | May 2026 | $1B | $26B | Not disclosed |
| Series C | Sep 2025 | $400M | $10.2B | Founders Fund |
| Series B | 2024 | ~$175M | ~$2B | Founders Fund |
| Series A | 2024 | $21M | Not disclosed | Founders Fund |
Cognition was founded in 2023 by Scott Wu, Steven Hao, and Walden Yan, and launched Devin in March 2024. It has raised over $1.6 billion in total. Peter Thiel’s Founders Fund has led several of its rounds.
The growth behind the talks
Cognition’s revenue has climbed at a rare pace. Its annual recurring revenue went from $1 million in September 2024 to about $73 million by June 2025. Its 2025 acquisition of Windsurf more than doubled that. By May 2026 the run rate had reached roughly $492 million, and it is now approaching $1 billion. That last number is what the $40 billion talks are built on.
The customer list is heavyweight. Cognition counts Goldman Sachs, Citi, Mercedes-Benz, Cisco, Palantir, and both the US Army and Navy among its users. Enterprises were growing their use of Devin by about 50 percent month over month.
Why it matters
Coding is the hottest area in AI right now, and Cognition sits near the top of it. The bet is that software will increasingly be built by autonomous agents rather than typed by hand. Devin is one of the clearest tests of that idea.
The competition is fierce. Cursor agreed to a roughly $60 billion deal with SpaceX. OpenAI and Anthropic are pouring resources into their own coding tools. Cognition’s answer is to own both sides of AI coding, the agent through Devin and the editor through Windsurf, so engineers can delegate whole tasks or work step by step in one place.
What to watch
The first thing to watch is whether the round actually closes at $40 billion. Reported talks do not always become deals, and terms can move.
The bigger question is durability. Cognition is priced for a future where autonomous coding becomes the norm across large enterprises. That requires Devin to stay reliable on complex, real world software, not just demos. If it holds, the valuation looks early. If reliability slips, the number looks stretched.
Frequently asked questions
Cognition is reportedly in talks to raise at a valuation above $40 billion as of August 2026. Its last confirmed valuation was $26 billion in May 2026. The $40 billion figure is not yet closed.
Cognition is reportedly raising more than $1 billion, according to Bloomberg. The round was in early talks as of August 12, 2026 and has not closed.
Cognition builds Devin, an AI agent that works as an autonomous software engineer, planning, writing, testing, and shipping code. It also owns the AI coding tool Windsurf.
Cognition was founded in 2023 by Scott Wu, who serves as CEO, along with Steven Hao and Walden Yan.