Cognition AI Raises $400M, Valued at $10.2 Billion Following Windsurf Acquisition

Cognition AI Secures $400 Million Funding, Reaches $10.2 Billion Valuation

Artificial intelligence startup Cognition AI announced on Monday the closing of a $400 million funding round, which values the company at $10.2 billion, including the newly raised capital. This milestone follows Cognition’s acquisition of AI firm Windsurf in July, just two months prior.

Cognition is known for developing an AI software engineer named Devin. The acquisition of Windsurf came shortly after Windsurf’s founding team and leading researchers departed to join Google. Windsurf had been engaged in multibillion-dollar acquisition talks with OpenAI, but those discussions collapsed, leading to Google’s subsequent agreement, which included a $2.4 billion payout for licensing and compensation.

Scott Wu, CEO of Cognition, highlighted the strategic synergy between Devin and Windsurf’s technologies in a recent blog post: “We’ll continue to invest significantly in both Devin and Windsurf, and our customers are already seeing how powerful the combination is together.”

This funding round places Cognition among an elite group of AI startups valued at $10 billion or more, alongside companies like OpenAI and Anthropic. Notably, Sierra, an AI startup led by Bret Taylor, raised $350 million last week at a similar valuation.

The financing was led by Peter Thiel’s Founders Fund, with additional investments from Lux Capital, 8VC, and Bain Capital Ventures.

Since acquiring Windsurf, Cognition has experienced accelerated growth, with annual recurring revenue (ARR) more than doubling. The combined enterprise ARR has increased by over 30%, according to Wu.

Jeff Wang, who took over as Windsurf’s CEO after its founders left for Google, emphasized the benefits customers will see from the integration of the two companies’ products. In a LinkedIn post, Wang wrote, “It’s been quite an eventful last few months, and now it’s time to show what we’re made of.”