Artificial intelligence startup Cognition AI has reached a valuation of $10.2 billion in a roughly $400 million funding round — a deal that highlights the continued investor frenzy around AI-powered software development.
The latest round was led by Founders Fund, the venture capital firm backed by Peter Thiel, and included existing investors such as Lux Capital, Joe Lonsdale’s 8VC, Elad Gil, Definition Capital and Swish Ventures, the company said Monday.
The deal marks a big jump in valuation for Cognition, which raised money earlier this year at a valuation of $4 billion. It also coincides with big growth for the company.
Cognition’s annual recurring revenue from its coding tool Devin — billed as “the world’s first AI software engineer” — was about $1 million in September 2024, and climbed to about $73 million in June. Since Cognition’s acquisition of coding startup Windsurf in July, its overall revenue has doubled, the company said. The startup said it has kept its net burn under $20 million since its founding two years ago.
Cognition’s deal to buy Windsurf made it famous in Silicon Valley this summer. The deal came after Alphabet Inc.’s Google inked a $2.4 billion agreement to license Windsurf’s technology and hire away much of its top talent — leaving remaining employees wondering what would happen next. Just days later, Cognition bought what was left of the company.
In the nearly two months since the Windsurf acquisition, Cognition said its enterprise ARR has grown by more than 30%, driven by cross-selling between previously distinct customer bases. Windsurf’s clients have adopted Devin, while Cognition’s business users — ranging from banks Goldman Sachs Group Inc. and Citigroup Inc. to tech companies like Palantir Technologies Inc. and Dell Technologies Inc. — have signed on to use Windsurf.
The company believes the combined product suite will allow Cognition to position itself as a leader in AI-powered software development, even as tech giants like Google, Microsoft Corp. and Amazon.com Inc. race to build out rival offerings.
The company plans to use the fresh influx of cash to expand its engineering team and accelerate product development, betting that AI agents will become a core part of corporate technology stacks.
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The latest round was led by Founders Fund, the venture capital firm backed by Peter Thiel, and included existing investors such as Lux Capital, Joe Lonsdale’s 8VC, Elad Gil, Definition Capital and Swish Ventures, the company said Monday.
The deal marks a big jump in valuation for Cognition, which raised money earlier this year at a valuation of $4 billion. It also coincides with big growth for the company.
Cognition’s annual recurring revenue from its coding tool Devin — billed as “the world’s first AI software engineer” — was about $1 million in September 2024, and climbed to about $73 million in June. Since Cognition’s acquisition of coding startup Windsurf in July, its overall revenue has doubled, the company said. The startup said it has kept its net burn under $20 million since its founding two years ago.
Cognition’s deal to buy Windsurf made it famous in Silicon Valley this summer. The deal came after Alphabet Inc.’s Google inked a $2.4 billion agreement to license Windsurf’s technology and hire away much of its top talent — leaving remaining employees wondering what would happen next. Just days later, Cognition bought what was left of the company.
In the nearly two months since the Windsurf acquisition, Cognition said its enterprise ARR has grown by more than 30%, driven by cross-selling between previously distinct customer bases. Windsurf’s clients have adopted Devin, while Cognition’s business users — ranging from banks Goldman Sachs Group Inc. and Citigroup Inc. to tech companies like Palantir Technologies Inc. and Dell Technologies Inc. — have signed on to use Windsurf.
The company believes the combined product suite will allow Cognition to position itself as a leader in AI-powered software development, even as tech giants like Google, Microsoft Corp. and Amazon.com Inc. race to build out rival offerings.
The company plans to use the fresh influx of cash to expand its engineering team and accelerate product development, betting that AI agents will become a core part of corporate technology stacks.
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