Cognition AI, an artificial intelligence startup, has attained a valuation of $10.2 billion following a funding round of approximately $ 400 million — a transaction that underscores the persistent investor excitement surrounding AI-driven software creation.

The most recent funding round was spearheaded by Founders Fund, the venture capital firm supported by Peter Thiel, and featured current investors such as Lux Capital, Joe Lonsdale’s 8VC, Elad Gil, Definition Capital, and Swish Ventures.

The agreement signifies a substantial increase in valuation for Cognition, which secured funding earlier this year at a valuation of $4 billion. It also aligns with significant expansion for the company.

Cognition's yearly recurring revenue from its coding tool Devin — touted as “the world’s first AI software engineer” — was roughly $1 million in September 2024 and increased to around $73 million in June. Cognition reports that its total revenue has doubled since acquiring the coding startup Windsurf in July.

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The startup reported that it has maintained its net burn below $20 million since it was established two years ago.

Cognition's agreement to acquire Windsurf brought it notoriety in Silicon Valley this summer. The agreement followed Alphabet Inc.’s Google signing a $2.4 billion deal to license Windsurf’s technology and recruit many of its leading employees — causing uncertainty among those who stayed about what would occur next. Only a few days later, Cognition acquired the remainder of the company.

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In the almost two months following the Windsurf acquisition, Cognition reported that its enterprise ARR has increased by over 30 percent, propelled by cross-selling among previously separate customer bases.

Clients of Windsurf have embraced Devin, while users in Cognition’s business sector — including banks like Goldman Sachs Group Inc. and Citigroup Inc., along with tech firms such as Palantir Technologies Inc. and Dell Technologies Inc. — have committed to utilizing Windsurf.

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The firm is confident that the integrated product lineup will enable Cognition to establish itself as a frontrunner in AI-driven software development, even while tech behemoths like Google, Microsoft Corp., and Amazon.com Inc. compete to develop competing solutions.