Cognition AI, the startup behind the AI coding agent Devin, has reached a $10.2 billion valuation. This milestone follows a successful $400 million funding round, which marks a significant jump from the company’s $4 billion valuation earlier this year.
The latest funding round was led by Founders Fund, the Peter Thiel-backed venture capital firm. They were joined by existing investors, including Lux Capital, Joe Lonsdale’s 8VC, Elad Gil, Definition Capital, and Swish Ventures.
This fundraising success follows a period of serious growth for Cognition’s core product. The startup’s annual recurring revenue from Devin climbed to $73 million in June. This is a substantial increase from the $1 million recorded in September 2024. According to reports, the company’s net burn has remained under $20 million since its founding two years ago.
The company has also been active in acquisitions. In July, Cognition acquired the AI coding startup Windsurf. This move came just days after Google recruited Windsurf’s CEO, co-founder, and key research leads.
Alongside its rapid growth, the company has built a reputation for placing strict demands on its workforce. Last month, Cognition laid off 30 staff members. The company then offered buyouts to its remaining 200 employees. This offer provided a way out for those who did not wish to meet the expectation of working 80-hour, six-day weeks.