Cognition AI

Cognition AI Raises $400M at $10.2B Valuation Amid Rapid Growth

September 8, 2025 - Cognition AI, the developer of AI coding agent Devin, has secured $400 million in funding, pushing its valuation to $10.2 billion, according to Bloomberg. This marks a significant leap from its $4 billion valuation earlier this year.

The latest round was led by Peter Thiel-backed Founders Fund, with continued support from existing investors including Lux Capital, Elad Gil, Swish Ventures, Joe Lonsdale’s 8VC, and Definition Capital.

In July, Cognition made headlines by acquiring AI coding firm Windsurf, shortly after Google recruited Windsurf's CEO, co-founder, and lead researchers.

The funding follows a sharp uptick in demand for Cognition's flagship product. Devin's annual recurring revenue reached $73 million in June, a dramatic rise from just $1 million in September 2024. Despite the growth, the company has kept its net burn under $20 million since its inception two years ago, Bloomberg reports.

However, the company has also drawn attention for its intense workplace culture. In August, Cognition laid off 30 employees and extended buyout offers to the remaining 200 staff, giving them the option to leave rather than commit to a demanding 80-hour, six-day work schedule.

Source: https://techcrunch.com/2025/09/08/cognition-ai-defies-turbulence-with-a-400m-raise-at-10-2b-valuation/

Cognition Offers Buyouts to Windsurf Staff Just Weeks After Acquisition

August 5, 2025 - Just three weeks after acquiring AI coding rival Windsurf, Cognition has laid off 30 employees and is now offering voluntary buyouts to the remaining team, according to a report from The Information.

The abrupt shift follows a turbulent chapter for Windsurf. The startup was previously in acquisition talks with OpenAI, lost key leadership—including its CEO and co-founders—in a $2.4 billion reverse-acquihire by Google, and was eventually purchased by Cognition. At the time of the deal, Cognition emphasized its commitment to retaining Windsurf’s “world-class people” and assured that all employees would be financially compensated.

However, internal developments suggest that the acquisition was primarily focused on Windsurf’s intellectual property rather than its personnel.

As per the email cited by The Information, Cognition is giving employees until August 10 to accept a buyout offer equivalent to nine months’ salary. Those who choose to remain will face strict in-office requirements and demanding schedules—six days per week and more than 80 hours weekly—conditions increasingly common among high-intensity AI startups.

Cognition CEO Scott Wu outlined the company’s expectations in a staff email, stating, “We don’t believe in work-life balance—building the future of software engineering is a mission we all care so deeply about that we couldn’t possibly separate the two.”

TechCrunch has reached out to Cognition for comment.

Source: https://techcrunch.com/2025/08/05/three-weeks-after-acquiring-windsurf-cognition-offers-staff-the-exit-door/