Cognition AI Doubles Valuation to $48B in $2B Funding Round as Revenue Surges

Cognition AI Inc., a developer of artificial intelligence agents for software engineering, announced today that it has closed a Series E funding round exceeding $2 billion, valuing the company at $48 billion. The new valuation represents a near-doubling from the company's previous funding round in May, when investors valued it at $26 billion and contributed more than $1 billion.

The company's financial trajectory has accelerated sharply. When Cognition raised funds in May, its run-rate revenue stood at $492 million. That figure has since climbed to nearly $900 million, the company disclosed.

Scott Wu, who founded Cognition in 2024, leads the company as chief executive. The startup develops AI agents capable of managing complete software engineering workflows. Its primary offering, Devin, operates from broad technical specifications rather than granular code instructions, autonomously handling task planning, code generation, testing, bug fixes and deployment within isolated environments.

Cognition's portfolio expanded when it acquired Windsurf, an AI-powered code editor, in July 2025. The acquisition followed a failed acquisition attempt by OpenAI Group PBC and a subsequent technology licensing arrangement between Google LLC and Windsurf's founders.

Devin has gained traction across multiple industries. Nvidia Corp. employs it for chip design work, GE Aerospace uses it for aviation applications, Citigroup Inc. has adopted it for financial services, Mercedes-Benz Group AG relies on it for automotive engineering, and Modal Labs Inc. leverages it for AI infrastructure. Goldman Sachs Group Inc. is also among its customers.

The platform has recently introduced new capabilities. Devin Auto-Triage examines production incidents, Devin Security Swarm identifies code vulnerabilities, and Devin Automations initiates agent tasks triggered by activity in Slack, GitHub and Linear.

Cognition distinguishes itself by positioning as an independent agent laboratory capable of selecting and integrating multiple models for specific tasks, contrasting with competitors bound to single model providers. The company has articulated a vision where software developers function as architects while delegating implementation responsibilities to agent networks.

The startup has expanded its geographic footprint by establishing six new offices in Washington, Tokyo, Singapore, London, São Paulo and Madrid, supplementing existing operations in San Francisco, New York and Austin.

Challenges and Controversies

Cognition has faced scrutiny during its growth phase. Following Devin's debut in March 2024, a video published on the Bugs YouTube channel questioned whether the demonstration accurately represented the agent's capabilities on an actual Upwork assignment. This incident intensified broader developer community concerns regarding the veracity of the company's performance metrics.

A second wave of criticism emerged in August 2025, three weeks after the Windsurf acquisition announcement. Cognition reduced its workforce by 30 employees and presented the remaining approximately 200 staff members with two options: accept nine months of severance pay or continue employment under a schedule requiring six-day work weeks exceeding 80 hours, according to TechCrunch. In a memo to employees, Wu stated, "We don't believe in work-life balance."

Investor Participation

Andreessen Horowitz and Accel led the Series E round as new investors. Returning backers included Founders Fund Management, General Catalyst Group Management and Avenir Growth Capital. Beyond these lead investors, more than 30 additional firms participated in the round.

• Benchmark Capital Partners
• Bessemer Venture Partners
• Kleiner Perkins Caufield & Byers
• Greylock Partners
• Lightspeed Venture Partners
• Bond Capital Management LP
• T. Rowe Price Group Inc.
• Lux Capital Management
• 8VC Management
• Bain Capital Ventures
• Nvidia

Notably, Nvidia's involvement in the funding round establishes a dual relationship, as the chipmaker is simultaneously an investor in Cognition and a customer of its Devin product.