Cognition AI, the company behind Devin, an advanced AI programming assistant, has announced that it has successfully raised over $400 million from investors.
This round of funding was led by Founders Fund, with participation from existing investors including Lux Capital, 8VC, Elad Gil, Definition Capital, and Swish Ventures. Cognition's valuation has now reached $10.2 billion, up significantly from $4 billion in March.
The surge in valuation reflects the company's rapid revenue growth over the past year. According to Cognition, its annualized recurring revenue (ARR) increased from $1 million in September last year to $73 million by June this year. Its clientele includes major technology firms such as Dell Technologies and Cisco Systems.
Devin, Cognition’s AI-powered programming assistant, automates tasks like scanning code files for errors. Before executing a user-assigned task, the software generates a step-by-step plan detailing how it intends to complete the job. It also provides a confidence score, indicating the likelihood that the generated code will be functional. Developers can use this metric to decide whether it's worthwhile to proceed.
According to Cognition, its AI minimizes errors not only before but also after code generation. It runs a series of tests on the output code to identify potential issues.
Cognition offers both a standard version of Devin and an enhanced enterprise edition. The latter allows clients to create customized versions of Devin optimized for specific engineering tasks, along with additional cybersecurity controls and audit logging capabilities.
In July, Cognition expanded its product portfolio by acquiring assets from Windsurf, a fellow programming automation startup. Days later, Google reportedly hired several senior employees from Windsurf and licensed its technology in a deal valued at $2.4 billion. Cognition stated that this acquisition has significantly contributed to its recent revenue growth.
"The acquisition of Windsurf has more than doubled our annualized recurring revenue," wrote Scott Wu, founder and CEO of Cognition, in a blog post. "Prior to the acquisition, our enterprise customer overlap was less than 5%. Combining Devin’s rapid adoption with Windsurf’s IDE product and expanded go-to-market engine has been a major breakthrough."
Windsurf developed an integrated development environment (IDE) where programmers can write and debug code. Its built-in AI tool, Cascade, offers auto-complete suggestions and accelerates related tasks such as moving the cursor to specific sections of code within a file.
Cognition plans to use the newly raised capital to expand its marketing and engineering teams. Additionally, the company intends to develop new AI models designed to optimize software development workflows.
