Cognition AI, the startup behind AI coding agent Devin has raised $400 million in its latest round. The company hit $10.2 billion in valuation, marking a considerable jump from its previous valuation of $4 billion.
The round was led by Peter Thiel-backed Founders Fund, and other investors include Lux Capital, Joe Lonsdale’s 8VC, Elad Gil, Definition Capital and Swish Ventures.
This fundraise comes after serious growth for Cognition’s core product. The startup’s annual recurring revenue from Devin has climbed to $73 million in June, up from $1 million in September 2024.
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Cognition positions Devin as “the world’s first AI software engineer,” a tool designed to enhance coding efficiency by automating repetitive tasks, predicting bugs, and potentially completing entire software projects autonomously. It is reportedly capable of planning and executing intricate engineering tasks and can recall relevant context at every stage, learn over time, and rectify errors.
The AI tool has been equipped with a suite of common developer tools, including a shell, code editor, and browser, all within a sandboxed computing environment.
Cognition faces competition from other AI coding startups, some of which have also attracted significant valuations. Anysphere, which is developing the AI code editor Cursor, is in the talks to raise funding at a $10 billion valuation, according to Bloomberg. StackBlitz, another competitor in the space, is also in discussions to raise capital at a valuation of $700 million for its AI tool Bolt.new, designed for building websites.
Back in July, Cognition acquired AI coding startup Windsurf. The acquisition came soon after Google hired Windsurf’s now former CEO Varun Mohan, along with co-founder Douglas Chen and other senior team members in a $2.4 billion reverse-acquihire. Earlier, it was reported that OpenAI was set to acquire Windsurf for $3 billion, however, the deal failed to go through.
“We’ll continue to invest significantly in both Devin and Windsurf, and our customers are already seeing how powerful the combination is together,” Cognition CEO Scott Wu wrote in a blog post on Monday.
Wu stated that Cognition’s annual recurring revenue has doubled since acquiring Windsurf. Jeff Wang, who became CEO at Windsurf after the founders left for Google, wrote in a LinkedIn post on Monday that customers will benefit from the close connection between the companies’ products. “It’s been quite an eventful last few months, and now it’s time to show what we’re made of,” Wang wrote.