Cognition, the San Francisco-based AI coding startup behind autonomous software engineer Devin, is in early talks to raise hundreds of millions of dollars in a new funding round that would value the company at $25 billion, according to a Bloomberg report. The discussions are ongoing and terms could change, but the round would more than double the company’s current valuation of $10.2 billion, set just months ago.
The potential raise taps into surging investor demand for companies at the forefront of AI-driven software development, a market where Cognition has established an early lead with its Devin product. Founded in August 2023 by Scott Wu, Steven Hao, and Walden Yan, all competitive programmers who won gold medals at the International Olympiad in Informatics, Cognition built Devin as a fully autonomous AI software engineer capable of handling development projects from inception to completion, including writing, testing, and deployment, without constant human input.
The company has grown at a rapid pace. Devin’s annualized recurring revenue surged from $1 million in September 2024 to $73 million by June 2025. In July 2025, Cognition acquired Windsurf, an AI-native integrated development environment, after the deal for Windsurf’s founders fell apart with Google. The acquisition proved immediately accretive, with combined enterprise ARR rising more than 30% in the seven weeks following the close, and less than 5% overlap in enterprise customers between the two companies pre-acquisition. Customers now include Goldman Sachs, Citi, Dell, Cisco, Ramp, Palantir, Nubank, and Mercado Libre.
Cognition’s most recent primary fundraise, a $400 million round in September 2025 led by Founders Fund with participation from Lux Capital, 8VC, Elad Gil, Definition Capital, Bain Capital Ventures, and others, set its valuation at $10.2 billion. The company’s rapid valuation trajectory, from $350 million in early 2024 to $2 billion, then $4 billion, then $10.2 billion, reflects the pace at which the AI coding category has expanded. The global market for generative AI coding assistants is projected to grow from roughly $26 million in 2024 to nearly $98 million by 2030, representing a compound annual growth rate of nearly 25%.
