Cognition, the artificial intelligence company that bought Windsurf in July, said on Monday it had successfully finished a $400 million investment round. reaching a valuation of $10.2 billion, which includes the fresh capital.
Two months ago, Cognition, the inventor of Devin, an artificial intelligence software engineer, grabbed notice shortly after the Founders and top scientists of startups moved to Google. Windsurf had been in negotiations with OpenAI over a possible multibillion-dollar acquisition; however, those talks fell through, therefore opening the door for the agreement with Google, which required the tech behemoth to make a $2.4 billion payment for licensing royalties and other compensation. OpenAI decided to tap into Thinking Machines as its first APAC services partner.
Cognition’s CEO Scott Wu said in a blog post released on Monday that “We’ll continue to invest significantly in both Devin and Windsurf, and our customers are already seeing how powerful the combination is together.” This agreement brings Cognition into the exclusive $10 billion club, matching it with a small group of other AI firms, including the well-known OpenAI and Anthropic. Last week, Bret Taylor’s artificial intelligence initiative Sierra raised $350 million at a $10 billion valuation.
Leading the most recent round of financing for Cognition with Lux Capital, 8VC, and Bain Capital Ventures were Peter Thiel’s Founders Fund. According to Wu, Cognition’s yearly recurring revenue (ARR) has more than doubled since it bought Windsurf. He observed as well that development had accelerated, with the total business ARR going up more than 30% after the acquisition.
In a LinkedIn post on Monday, Jeff Wang, who took over the helm of Windsurf after the founders went to Google, said that customers will gain from the close interplay between the goods of each firm. Wang, in his blog, wrote that the last few months have been quite eventful, and now the time has come to show what they are made of.
