Cognition Secures Over $400 Million in Funding, Valuation Soars to $10.2 Billion
On September 8, the artificial intelligence startup Cognition revealed it had successfully raised in excess of $400 million in a funding round spearheaded by Founders Fund, positioning the company at a post-money valuation of $10.2 billion.
Returning investors, including Lux, 8VC, Neo, Elad Gil, Definition Capital, and Swish VC, participated alongside newcomers Bain Capital Ventures and D1 Capital, enhancing the investment landscape.
Established in 2024, Cognition specializes in developing AI-driven coding agents and tools aimed at revolutionizing software development. The company has witnessed a remarkable acceleration in revenue growth; its AI coding agent, Devin, burgeoned from $1 million in annual recurring revenue (ARR) in September 2024 to a substantial $73 million by June 2025.
“Though we stand at the nascent stages of AI coding, agents are already contributing significantly alongside individual developers and within expansive enterprise engineering teams,” Cognition remarked in a statement via X.
The company disclosed that its total net burn has consistently remained below $20 million throughout its lifespan. Earlier this year, Cognition expanded its portfolio by acquiring Windsurf, an integrated development environment (IDE) focused on coding, which reportedly more than doubled its ARR and equipped it with a comprehensive suite of AI coding products.
Currently, the two predominant varieties of AI coding tools are IDEs and agents. Engineers invariably desire both: the IDE for meticulous decision-making and the agent for seamless execution, the company added.
Cognition has asserted that the Windsurf acquisition has significantly propelled its enterprise business, with annual recurring revenue experiencing a surge of over 30% within seven weeks of the deal closure.
With previously less than 5% customer overlap, this strategic move has allowed the company to amalgamate “the swift uptake of Devin with Windsurf’s IDE product and a robust go-to-market strategy,” further accelerating growth.
“Our integrated platform now supports category-defining clients, including Goldman Sachs, Citi, Dell, Cisco, Ramp, Palantir, Nubank, and Mercado Libre,” the company stated.
Cognition’s mission is to redefine the future of software engineering, enabling developers to concentrate on creative problem-solving while delegating execution to autonomous agents. “We envision a landscape of software abundance where engineers evolve into architects,” noted the company.
Reflecting on their foundational journey, the founding team expressed: “When we initiated Cognition, we were a small cadre of engineers bonded by a lifelong passion for coding and over a decade of camaraderie. We retreated to a New York apartment and crafted the product we had always yearned for ourselves.”
The organization has extended an invitation to engineers who resonate with its mission to join its expanding team.
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