AI coding startup Cognition in talks to raise new round at $40 billion valuation

AI coding startup Cognition is in talks to raise a new funding round at a valuation of roughly $40 billion, according to a report carried by thedailystar.net. The report, published on August 17, says negotiations are underway, while the specific investors and the amount to be raised have not been disclosed.

Cognition is one of the most prominent companies in the AI coding space, building agentic tools that automate software development tasks for engineering teams.

A $40 billion valuation would place Cognition among the most valuable private AI companies globally, on par with the top tier of the industry.

The potential round comes as AI coding is widely seen as one of the clearest commercialization paths for large language models, with capital pouring into companies that can demonstrably boost developer productivity.

It is worth noting that the "in talks" framing means the deal is not final — the valuation and participating investors could still change before closing.

What to watch next: the lead investors and final valuation of the round, and how Cognition plans to expand its product line and enterprise footprint.