Cognition AI Hits $10.2B Valuation After $400M Funding Round

US artificial intelligence startup Cognition has achieved a $10.2 billion valuation following a $400 million funding round led by Founders Fund. The investment saw participation from Lux Capital, 8VC, and new backers including Bain Capital Ventures, signaling strong institutional confidence in the AI sector.

The company's revenue growth trajectory is undeniable—annual recurring revenue skyrocketed from $1 million to $73 million in under a year. This surge follows Cognition's strategic acquisition of Windsurf, an IDE provider, which doubled enterprise revenue and accelerated adoption among Fortune 500 companies.

While AI coding tools like Cognition's Devin face technical limitations, the firm positions its flagship product as an engineering collaborator rather than a replacement. The market appears to agree, rewarding revenue-generating AI ventures amid broader tech sector volatility.