Artificial intelligence startup Cognition said on Monday it had raised $400 million in a funding round led by Peter Thiel’s funded Founders Fund, valuing the company at $10.2 billion, including the fresh capital.
The San Francisco-based firm, known for its AI software engineer Devin, gained prominence in July after acquiring Windsurf, a rival startup whose founders and top researchers had recently departed to join Google.
Windsurf had previously been in talks with OpenAI over a multibillion-dollar acquisition, but negotiations collapsed, paving the way for Google to strike a $2.4 billion licensing and compensation deal with the team.
“We’ll continue to invest significantly in both Devin and Windsurf, and our customers are already seeing how powerful the combination is together,” Cognition CEO Scott Wu said in a blog post.
The latest funding round, which also included Lux Capital, 8VC and Bain Capital Ventures, places Cognition among a select group of AI startups with decacorn status, alongside OpenAI, Anthropic and Sierra, which last week raised $350 million at a similar valuation.
Wu said Cognition’s annual recurring revenue (ARR) has more than doubled since the Windsurf acquisition, with combined enterprise ARR up over 30%.
Jeff Wang, who took over as CEO of Windsurf following the founders’ exit, said in a LinkedIn post that customers would benefit from the tighter integration between the two companies’ products.
“It’s been quite an eventful last few months, and now it’s time to show what we’re made of,” Wang wrote.