Artificial intelligence (AI) startup Cognition said it is now a $26 billion company.
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As the company said in its announcement Wednesday (May 27), Cognition reached that valuation after raising more than $1 billion in a new Series D funding round, financing it will use for its AI software engineer “Devin.”
“We launched Devin two years ago as the first AI software engineer,” the company said. “Since then, cloud agents have gone from niche to mainstream, and today they are the fastest growing way to create software.”
The announcement added that Cognition’s enterprise usage has increased more than ten times over since the beginning of the year, with its run-rate revenue reaching $492 million. It works with the likes of Citi, Mercedes-Benz, Goldman Sachs, and both the U.S. Army and Navy.
“Customers are delivering real outcomes with this leverage. Mercedes-Benz cut an eight-month legacy modernization project down to eight days,” the announcement said. “Itaú, Latin America’s largest bank, fixes 70% of security vulnerabilities automatically with Devin.”
The company’s new valuation is more than double the $10 billion figure Cognition reached in a funding round last year.
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Now, Cognition is “shifting to a world of self-driving software development,” the announcement added. “Individual engineers are able to spend more of their time on the creative structuring of problems and tasks, and their army of Devins reliably executes.”
In other AI news, PYMNTS wrote recently about the cost pressures associated with AI adoption, which are “real and getting harder to ignore.”
The report cited an interview in The Information with Uber’s chief technology officer, Praveen Neppalli Naga, who said the AI budget he’d planned had exceeded projections, driven by surging internal use of Anthropic’s Claude Code.
Around 11% of live updates to Uber’s back-end systems are now written by AI agents, compared to a fraction of a percent three months earlier, per PYMNTS coverage. Uber’s research and development expenses jumped 9% to $3.4 billion in 2025.
“That pattern of usage surging past projections while cost controls lag, recurs across enterprise deployments,” PYMNTS wrote. “AI tools don’t carry fixed license fees. Every interaction consumes compute, measured in tokens and organizations that actively push adoption learn that costs scale in kind.”
The adoption problem goes beyond cost management, the report said. EY research found that 78% of U.K. companies believe AI is either fully or mostly implemented in their operations, but nearly half say their approach does not meet the demands of autonomous AI systems.
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