AI startup Cognition in new funding talks at $40 billion value

Cognition AI is in early talks with investors for a new funding round that may boost the coding startup’s valuation by more than 50% to at least $40 billion, people familiar with the matter said.

Prospective investors are circling the company less than three months after the AI firm raised $1 billion at a $26 billion valuation, the people said, asking to remain unidentified to talk about a private deal. The potential backers are seeking to secure a slice of a leading player in one of the industry’s hottest spheres. The company’s annualized revenue run rate is now approaching $1 billion, roughly double the figure the firm posted during its previous financing, the people said.