AI Coding Startup Cognition Seeks Funding at $25 Billion Valuation

Cognition AI, the maker of Devin—an AI tool designed to handle software development tasks—is in early-stage funding negotiations that could value the company at $25 billion, more than doubling its previous valuation. The startup is targeting a raise in the "hundreds of millions of dollars or more," according to sources familiar with the discussions who requested anonymity. This funding push reflects surging investor appetite for AI companies that have cracked the code on practical applications in software engineering, a sector where automation could reshape how code gets written and debugged. The timing is significant: as major tech companies race to integrate AI into developer workflows and GitHub Copilot-style tools become table stakes, venture capital is aggressively backing startups that can demonstrate real traction in this high-stakes market. Though the talks remain in their early phases and terms could shift, the valuation jump signals how bullish the market has become on AI-native software development platforms.