AI coding company Cognition, maker of Devin, has reached nearly $1B in annual recurring revenue and is targeting a $40B valuation in a new funding round, surpassing Cursor's $29.3B acquisition valuation. The company highlights its agentic approach and rapid environment setup, amid intensifying competition in the AI coding space.
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Cognition targets a $40 billion valuation, surpassing Cursor. The AI coding track shifts from editor tools to agentic paradigms, with capital concentration and M&A acceleration becoming the new norm.
According to QbitAI, Cognition is in a new funding round targeting a valuation of $40 billion, up 54% from $26 billion three months ago. This figure will officially surpass Cursor's $29.3 billion private valuation before its acquisition by SpaceX. The AI Insider, citing Bloomberg, reports that Cognition is in early talks with investors at a valuation that could reach $40 billion, tied to an annualized revenue of $1 billion.
Cognition's annualized revenue (ARR) is approaching $1 billion, nearly doubling since its last round. Three months ago, its revenue multiple was about 52x; at the new valuation, it narrows to about 40x. The narrowing multiple indicates that actual revenue growth is outpacing the rate at which investors are raising the valuation, suggesting that the valuation increase is supported by real revenue.
This article's information primarily comes from reports by QbitAI and The AI Insider. QbitAI is a Chinese tech media outlet, and The AI Insider is an English tech media outlet; neither is a primary source. Valuation and revenue figures are as reported by media or claimed by the companies and have not been independently verified. Some data, such as ARR and valuation targets, come from the company or insiders and are subject to uncertainty.
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