Cognition reportedly in talks to raise at $40B valuation; August AI in talks for $4M from Peak XV

Cognition is reportedly in talks to raise funds at a staggering $40 billion valuation, following its previous $1 billion funding round in May. This new round is anticipated to be based on achieving a $1 billion annualized revenue run rate, as sources indicate.¹²⁴

Three months ago, Cognition announced it had achieved a $492 million annualized revenue run rate, with enterprises increasing their usage of its AI coding agent, Devin, by 50% month-over-month for six months. The company counts Mercedes-Benz, NASA, and Goldman Sachs among its clients, highlighting its growing popularity in the enterprise sector.

Meanwhile, August AI, an AI health companion startup, is in discussions to raise approximately $4 million from Peak XV Partners. The details of the transaction, including valuation and other investors, remain unclear as discussions are ongoing. August AI, founded in 2022, operates a platform that assists users with understanding symptoms, prescriptions, and medical reports, and has over 350,000 active users, including 100,000 doctors.³⁵

The startup's previous funding round in October 2025 raised $3 million from Accel and Claypond Capital. The growing interest in AI-driven health solutions reflects a broader trend in the healthtech sector, as startups leverage AI to enhance healthcare access and efficiency.