Cognition AI Reaches $10.2 Billion Valuation with $400 Million Funding Round

Cognition AI has secured a $400 million funding round, pushing its valuation to $10.2 billion. The funding will be used to scale engineering capacity and speed up product innovation. The company's annual recurring revenue from its AI software engineer, Devin, has surged from $1 million in September 2024 to $73 million in June. Cognition's acquisition of Windsurf has accelerated its growth, with overall revenue doubling since the deal.

Cognition AI, the developer of AI software engineer Devin, has secured a $400 million funding round, pushing its valuation to $10.2 billion. The funding, led by Founders Fund with participation from Lux Capital, 8VC, and other investors, will be used to scale engineering capacity and accelerate product innovation [1].

The company's annual recurring revenue (ARR) from Devin has surged from $1 million in September 2024 to $73 million in June. This significant growth is attributed to the company's acquisition of AI coding startup Windsurf in July, which has doubled Cognition's overall revenue since the deal [2].

Since acquiring Windsurf, Cognition's enterprise ARR has grown by more than 30%, driven by cross-selling between previously distinct customer bases. The company's business users range from major financial institutions like Goldman Sachs and Citigroup to tech companies like Palantir and Dell Technologies [3].

Cognition 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. The company has also been offering buyouts to some Windsurf staff while hiring in other areas to align with its intense work culture [4].

References:

[1] https://www.cnbc.com/2025/09/08/cognition-valued-at-10point2-billion-two-months-after-windsurf-.html
[2] https://finance.yahoo.com/news/cognition-ai-reaches-10-billion-173341014.html
[3] https://pitchbook.com/news/articles/ai-coding-startup-cognition-raises-400m-10-2b-valuation
[4] https://techcrunch.com/2025/09/08/cognition-ai-defies-turbulence-with-a-400m-raise-at-10-2b-valuation/