AI Startup Cognition AI Reaches $4 Billion Valuation in New Funding

Cognition AI, the developer of the artificial intelligence-based coding assistant Devin, has secured a new round of funding, bringing its valuation to nearly $4 billion. The investment was led by 8VC, the venture capital firm backed by Joe Lonsdale, and involved participation from several existing investors. Sources familiar with the deal confirmed the details but asked not to be named due to the private nature of the transaction.

Major investors join in as valuation doubles

The latest fundraising has drawn continued support from backers such as Founders Fund, Khosla Ventures, Elad Gil, and Conviction Partners, who previously participated in a 2023 round that valued Cognition AI at $2 billion, according to data from PitchBook. The sharp increase in valuation within a year highlights the current momentum behind AI-driven software development tools, especially those targeting code generation and automation.

Devin aims to automate development workflows

Released a year ago, Devin is presented by the company as “the world’s first AI software engineer,” and is designed to take on software development tasks that range from repetitive code writing to identifying potential bugs. The tool is among a new wave of AI applications that promise to accelerate and streamline software engineering by handling certain functions without constant human input.

Competitive activity in AI coding tools accelerates

The growth of Cognition AI comes at a time when investors are actively pursuing companies in the AI coding assistant space. Rivals like Anysphere, known for its AI code editor Cursor, are reportedly seeking capital at valuations near $10 billion. Another firm, StackBlitz Inc., which created the web development tool Bolt.new, is also in talks to raise funds at a $700 million valuation, according to Bloomberg.

Founders with previous startup experience

Founded in 2023 by Scott Wu, Steven Hao, and Walden Yan, Cognition AI has quickly gained traction among venture capital circles. Scott Wu, who serves as CEO, is an award-winning coder and also co-founded the networking platform Lunchclub. His background in tech startups and software development has played a role in shaping the company’s direction, particularly in identifying a commercial use case for AI in engineering.

As interest in AI-powered development tools grows, Cognition AI's ability to double its valuation signals sustained appetite among investors for companies exploring practical applications of generative AI.