Cognition AI, the startup behind the AI software engineer Devin, is in talks to raise a new funding round that would value the company at $25 billion, according to Bloomberg. That’s more than double its previous $10.2 billion valuation.
From One Million to 73 Million in Nine Months
The numbers behind this valuation aren’t just hype. Devin’s annualized recurring revenue surged from $1 million in September 2024 to $73 million by June 2025. Microsoft, Dell, and Cisco are among its customers.
Devin isn’t your typical autocomplete tool like GitHub Copilot. It takes on entire development tasks — from planning to implementation. While tools like Claude Code or Cursor assist developers, Devin aims to replace them in certain scenarios.
The AI Coding Market Is Overheating
Cognition’s valuation fits into a broader pattern. SpaceX recently secured an option to buy Cursor for $60 billion. GitHub Copilot had to pause new signups because costs were eating into revenue. And Anthropic removed Claude Code from the Pro plan because usage was too intense.
The market for AI-powered coding is growing faster than any other AI segment. But the question remains: how many of these valuations will survive the next benchmark cycle?
My Take
$25 billion for a startup whose product didn’t exist two years ago — that sounds like bubble territory. But Devin’s revenue growth is real, and the market for autonomous software development is just getting started. Whether Cognition can hold its own against Claude Code, Cursor, and Copilot long-term depends on whether ‘fully autonomous’ is actually better than ‘AI-assisted.’ My gut feeling: the truth lies somewhere in between.
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