Prime Highlight
- Cognition AI, developer of the AI coding assistant Devin, raised $400 million in new funding, reaching a $10.2 billion valuation led by Founders Fund.
- The company’s annual recurring revenue surged from $1 million in 2024 to $73 million in June 2025, showing rapid growth despite disciplined cash burn.
Key Facts
- Cognition acquired Windsurf, an AI coding startup, to strengthen its portfolio after the team’s exit to Google.
- The firm recently laid off 30 employees and offered buyouts to 200 staff amid concerns over its demanding 80-hour work weeks.
Background
The developer of the AI-based coding assistant Devin, Cognition AI, has received a new round of financing of $400 million, lifting its valuation to $10.2 billion. The round was led by Founders Fund, backed by Peter Thiel, with participation from existing investors including Lux Capital, 8VC, Elad Gil, Definition Capital, and Swish Ventures.
The flagship product of Cognition, Devin, was on a major momentum as an investment followed. The annual recurring revenue of the company increased to $73 million in June 2025, compared to $1 million in September 2024. Within two years, Cognition maintained a strong financial discipline, and despite the rapid growth, its net cash burn was less than 20 million dollars.
In July, Cognition strengthened its portfolio by acquiring Windsurf, an AI coding startup. The deal came shortly after Windsurf’s CEO and key team members left to join Google. The acquisition will assist Cognition in increasing its potential in AI-based coding solutions.
However, the company has also been in the spotlight for its demanding work culture. Last month, Cognition laid off 30 staff members and gave buyout offers to about 200 employees. The company said this was to provide options for workers facing high expectations, such as working 80-hour, six-day weeks.
This increase in funding and its aggressive plan will see Cognition AI increase its presence in the rapidly-growing AI market. Investors are placing bets on the technology and leadership of the company in its efforts to emerge as a giant player in AI-based coding solutions globally.
