Cognition AI Raises $400M, Surges to $10.2 Billion Valuation

Cognition AI, the company behind the widely discussed AI coding agent Devin, has made headlines with a fresh $400 million funding round. This significant investment has propelled the company’s valuation to an impressive $10.2 billion, more than doubling from its earlier $4 billion figure reported just months ago.

Who’s Backing Cognition AI?

This latest round was led by the influential Founders Fund, supported by returning investors such as Lux Capital, Joe Lonsdale’s 8VC, Elad Gil, Definition Capital, and Swish Ventures. The continued confidence from these backers underscores the market’s faith in Cognition AI’s rapid growth and innovation in the AI agent space.

Rapid Revenue Growth and Recent Acquisitions

Cognition AI’s core product, Devin, has seen explosive adoption. Annual recurring revenue soared from $1 million in September 2024 to $73 million by June 2025. Despite this rapid growth, Cognition has maintained a disciplined approach to spending, with net burn consistently under $20 million since its inception two years ago, according to Bloomberg.

In July, Cognition AI expanded its reach by acquiring another AI coding startup, Windsurf. This acquisition followed a dramatic period in which Google hired Windsurf’s CEO and senior research leaders, an event that drew industry attention.

Inside Cognition AI’s Company Culture

Despite these business successes, Cognition AI’s workplace culture has sparked debate. The company is known for its demanding work expectations, reportedly requiring 80-hour, six-day workweeks from its staff. In August, the company let go of 30 employees and offered buyouts to the remaining 200, providing an option to exit rather than continue under these conditions.

What’s Next for Cognition AI?

With substantial new funding and a rapidly growing user base, Cognition AI is well-positioned to push forward in the competitive AI agent market. The company’s focus on AI-driven coding tools places it at the forefront of a technological wave that could dramatically reshape software development.

References

• Cognition AI cinches $10 billion valuation with new funding
• Devin: the viral coding AI agent gets a new pay-as-you-go plan
• Cognition (maker of the AI coding agent Devin) acquires Windsurf
• Windsurf’s CEO goes to Google, OpenAI’s acquisition falls apart
• Three weeks after acquiring Windsurf, Cognition offers staff the exit door