Artificial intelligence startup Cognition AI said it has raised $400 million in a new funding round led by Peter Thiel-backed venture capital firm Founders Fund.

The funding round was raised at a valuation over $10 billion, more than double the valuation of $4 billion earlier this year, Cognition CEO Scott Wu wrote in a blog post.

The latest funding round saw participation from existing investors including Lux Capital, Joe Lonsdale’s 8VC, Elad Gil, Definition Capital and Swish Ventures.

New investors including Bain Capital Ventures, Hanabi Capital, and D1 Capital also pooled in capital in this round.

Last year in March, the startup launched its AI software engineer Devin. Devin's annual recurring revenue (ARR) grew from $1 million in September 2024 to $73 million in June 2025, as usage increased exponentially, it noted. It added that the company's total net burn has been under $20 million since its founding two years ago.

Earlier in July, Cognition agreed to acquire Windsurf to strengthen its position in the software engineering market.

"Our acquisition of Windsurf more than doubled our ARR. More importantly, it gave us the complete product suite for AI coding," it said.

The acquisition of Windsurf came days after Google hired Windsurf's CEO Varun Mohan and research leaders in a $2.4 billion reverse-acquihire deal. Interestingly, OpenAI had been negotiating to acquire Windsurf for around $3 billion in April, but the discussions fell through.

Last week, Bret Taylor’s AI startup Sierra raised $350 million at a $10 billion valuation.