Cognition AI just pulled off one of the year's most impressive funding rounds, closing $400 million at a $10.2 billion valuation — more than doubling its $4 billion price tag from earlier this year. The AI coding startup behind the viral Devin agent is defying market turbulence with explosive revenue growth that's catching Silicon Valley's attention.
Cognition AI just became the latest AI darling to defy venture market gravity. The startup behind the viral Devin coding agent closed a massive $400 million Series B at a $10.2 billion valuation, according to a Bloomberg report that sent shockwaves through Silicon Valley.
The round, led by Peter Thiel's Founders Fund, more than doubles Cognition's previous $4 billion valuation from earlier this year. Existing heavyweights including Lux Capital, Joe Lonsdale's 8VC, Elad Gil, Definition Capital and Swish Ventures all doubled down on their bets.
The math behind the valuation tells a compelling story. Cognition's annual recurring revenue from its flagship Devin product exploded from just $1 million in September 2024 to $73 million by June 2025, according to Bloomberg's reporting. That's a 73x growth trajectory in less than a year — the kind of hockey stick that makes venture capitalists reach for their checkbooks.
What's equally impressive is Cognition's capital efficiency. Despite the breakneck growth, the company has kept its net burn under $20 million since its founding two years ago. That discipline puts it in rare company among AI startups, where burn rates often spiraled into hundreds of millions as companies raced to scale.
The timing couldn't be more strategic. Just last month, Cognition made headlines by acquiring AI coding startup Windsurf, swooping in days after Google poached Windsurf's entire leadership team. The acquisition signals Cognition's aggressive expansion plans in the red-hot AI coding market.
But rapid growth has come with growing pains. The company has developed a reputation for demanding extreme commitment from its workforce, with employees expected to work 80-hour, six-day weeks. Last month, Cognition laid off 30 staffers and to its remaining 200 employees, essentially giving them an exit ramp from the high-pressure culture.
