News Summary

Cognition AI, known for its AI coding agent Devin, has achieved a valuation of $10.2 billion following a $400 million funding round. This marks a significant increase from its $4 billion valuation earlier this year. The funding round was led by Founders Fund, backed by Peter Thiel, with contributions from existing investors including Lux Capital, Joe Lonsdale’s 8VC, Elad Gil, Definition Capital, and Swish Ventures. In recent developments, Cognition acquired AI coding startup Windsurf in July, shortly after Google hired the startup’s CEO and co-founder. Cognition AI has seen substantial growth in its core product, with annual recurring revenue from Devin reaching $73 million in June, a sharp rise from $1 million in September 2024. Despite its growth, Cognition AI has been criticized for its demanding work environment, leading to layoffs and buyouts for employees not willing to work extensive hours.