"Cognition AI, the startup behind AI coding agent Devin, has hit a $10.2 billion valuation after raising $400 million, marking a jump from the company's $4 billion valuation earlier this year, reports Bloomberg. Founders Fund, the Peter Thiel-backed VC, led Cognition's latest round, with participation from existing investors like Lux Capital, Joe Lonsdale's 8VC, Elad Gil, Definition Capital and Swish Ventures."
"In July, Cognition acquired AI coding startup Windsurf, just days after Google poached the startup's CEO, co-founder, and research leads. The raise 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. Net burn has remained under $20 million since its founding two years ago, per Bloomberg."
"At the same time, the company has built a reputation for placing strict demands on its workers. Last month, Cognition laid off 30 staffers and offered buyouts to the remaining 200 employees, offering them a way out of the expectation to work 80-hour, six-day weeks."
Cognition AI raised $400 million and reached a $10.2 billion valuation, up from $4 billion earlier in the year. Founders Fund led the financing, with participation from Lux Capital, 8VC, Elad Gil, Definition Capital and Swish Ventures. Cognition acquired AI coding startup Windsurf in July shortly after Google hired Windsurf's CEO, co-founder and research leads. Devin annual recurring revenue climbed from $1 million in September 2024 to $73 million in June. Net burn has stayed under $20 million since founding two years ago. The company laid off 30 staffers and offered buyouts to 200 employees to relieve expectations of 80-hour, six-day weeks.
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