Cognition AI Raises $400M at $10.2B Valuation

Cognition AI Secures $400 Million, Valuation Surges to $10.2 Billion

Cognition AI, the company responsible for the AI coding agent Devin, has experienced a significant increase in valuation. Following a recent funding round of $400 million, the startup is now valued at $10.2 billion.

This represents a substantial leap from the $4 billion valuation Cognition AI held earlier in the year, as reported by Bloomberg.

Investment Details

The latest investment round was spearheaded by Founders Fund, a venture capital firm backed by Peter Thiel. Existing investors also participated, including Lux Capital, 8VC (led by Joe Lonsdale), Elad Gil, Definition Capital, and Swish Ventures.

Strategic Acquisition and Talent Challenges

Cognition AI demonstrated aggressive growth strategy through acquisition. In July, the company completed the purchase of AI coding startup Windsurf.

This acquisition occurred shortly after Google recruited Windsurf’s CEO, co-founder, and key research personnel.

Rapid Revenue Growth

Devin, Cognition AI’s primary product, has seen remarkable revenue growth. Annual recurring revenue reached $73 million in June.

This is a considerable increase from the $1 million in revenue generated in September 2024.

Financial Prudence and Operational Adjustments

Despite rapid expansion, Cognition AI has maintained financial discipline. The company’s net burn rate has remained below $20 million since its inception two years ago.

Workforce Restructuring

However, the company has also faced scrutiny regarding its work environment. Last month, Cognition AI reduced its workforce by laying off 30 employees.

Furthermore, buyouts were offered to the remaining 200 employees, providing an option to leave a work culture that previously demanded 80-hour work weeks spread across six days.