Just weeks after announcing a new round of funding at a $48 billion valuation, AI coding startup Cognition is fielding new investor interest at a much higher price. The startup has received offers valuing it at between $70 billion and $80 billion and is seriously considering a round before the end of the year, according to sources familiar with the matter. The talks around the financing are still early, and valuation targets could still change.

Founded in 2023 by Scott Wu, Steven Hao, and Walden Yan, Cognition is best known for Devin, an AI coding agent designed to automate software engineering tasks. The San Francisco-based company's existing investors include a16z, Accel, Founders Fund, Khosla Ventures, Elad Gil, and Pear VC. Cognition's rapid valuation climb underscores the investor frenzy around AI coding, one of the hottest and most competitive corners of the AI market. As companies race to sell AI coding agents that can take on more of the work engineers do, investors are placing increasingly expensive bets on the few startups they think could emerge as leaders.

A $75 billion valuation wouldn't be so far-fetched, as SpaceX just acquired fellow AI coding giant Cursor for $60 billion a few months ago. Last month, Cognition was drawn into a public feud with rival Factory AI, which accused Cognition employees of posing as job applicants to seek product information and faulted a former Factory adviser for meeting with Cognition executives. Cognition and the former adviser denied that confidential information was sought or shared.

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