AI Coding Startup Cognition Soars to $25 Billion Valuation with $1 Billion Raise

In a major vote of confidence from top-tier venture capitalists, Cognition, the developer of the autonomous AI software engineer Devin, has raised over $1 billion at a staggering $25 billion pre-money valuation. This marks a significant increase from its $10.2 billion post-money valuation in September, when the company closed a $400 million funding round. The latest round was led by Lux Capital and General Catalyst, with existing investors, including Founders Fund, 8VC, and others, pouring in.

New investors, such as Ribbit Capital, Atreides, and Layer Global, also participated in the round. This substantial investment suggests that there is still room for independent AI software coding startups, despite concerns that major model makers might dominate the market. Last year, it seemed likely that model makers would swallow the hot AI coding market themselves, with companies like Anthropic's Claude Code, OpenAI's Codex, and Google's coding agent Jules leading the charge.

However, Cognition, which acquired the remaining assets of Windsurf last year, has made significant strides, counting major enterprises like Mercedes-Benz, NASA, Goldman Sachs, and Santander as customers. The company's growth has been impressive, with a reported $492 million in annualized revenue run-rate. This is a result of enterprise usage of Devin growing 50% month-over-month for the past six months.

The successful raise and substantial valuation demonstrate the confidence investors have in Cognition's innovative approach to AI software coding. The investment will likely fuel Cognition's continued growth and development of its autonomous AI software engineer, Devin. As the AI coding market continues to evolve, Cognition's significant raise and valuation position the company as a major player in the industry.

The company's future plans and strategies will be closely watched, as it navigates the rapidly changing landscape of AI software coding and competition from major model makers.