Cognition AI Inc., a fast-growing U.S. artificial intelligence startup, has reached a valuation of $10.2 billion following a $400 million funding round, highlighting the ongoing investor enthusiasm for AI-driven software development.
The round was led by Founders Fund, the venture capital firm backed by Peter Thiel, and included participation from existing investors such as Lux Capital, 8VC (Joe Lonsdale), Elad Gil, Definition Capital, and Swish Ventures.
This latest raise more than doubled Cognition’s valuation from earlier this year, when it was valued at $4 billion. The surge reflects the company’s rapid growth, fueled by strong adoption of its flagship product Devin, marketed as the “world’s first AI programmer.” Annual recurring revenue from Devin subscriptions skyrocketed from $1 million in September 2024 to $73 million by June 2025.
Momentum further accelerated after Cognition’s acquisition of Windsurf, a coding startup, in July. The acquisition doubled the company’s total revenue and led to more than 30% growth in enterprise ARR within two months, driven by cross-selling opportunities between the two firms’ client bases.
Some of Windsurf’s former customers have already adopted Devin, while Cognition’s existing enterprise clients — including Goldman Sachs, Citigroup, Palantir, and Dell Technologies — have expanded their use of the combined product suite.
CEO and co-founder Scott Wu emphasized the strategic importance of raising fresh capital:
“As the game gets bigger, having access to capital becomes incredibly valuable. There’s a lot to do when it comes to go-to-market execution and advancing research and model training,” Wu told Bloomberg TV.
The new funding will be used to scale engineering teams, accelerate product development, and position Cognition as a key player in the race to bring AI agents to enterprise environments — even as tech giants like Google, Microsoft, and Amazon compete in the same space.
Cognition is also offering buyouts to some Windsurf employees while actively hiring in other areas to ensure cultural alignment. Wu noted that the company’s intense culture is a defining factor of its success:
“It’s about cultural fit — not everyone is suited to the pace and intensity that defines Cognition.”
With a fresh $400M in its war chest and a skyrocketing ARR, Cognition AI is now seen as one of Silicon Valley’s most promising contenders to shape the future of AI-powered software development.
