Cognition AI Is Raising at a $25 Billion Valuation After Windsurf and Devin Momentum

Cognition AI is in early funding talks at a valuation of approximately $25 billion, according to Bloomberg reporting from April 23. If the round closes at that figure, it would more than double the company’s $10.2 billion valuation from its last primary raise in September 2024.

The company makes two products: Devin, its autonomous AI software engineer, and Windsurf, the AI-native code editor it acquired in July 2025. The two products merged into a single platform earlier this month with the launch of Windsurf 2.0, which integrated Devin directly into the Windsurf editor through an Agent Command Center.

The Numbers

Cognition’s revenue trajectory is what’s driving the interest. The company had $1 million in annualized recurring revenue as of September 2024. By June 2025, that had grown to $73 million ARR. Post-Windsurf acquisition, the figure has reportedly more than doubled again.

Going from $1M to over $150M ARR in roughly 18 months is the kind of growth that justifies these conversations. Devin’s enterprise customer base includes Dell Technologies and Cisco Systems, and the addition of Windsurf’s developer user base expanded the revenue mix significantly.

The new round is described as “hundreds of millions of dollars or more” with terms still being negotiated. The $25 billion valuation would be Cognition’s third major step up:

• March 2024: $4 billion
• September 2024: $10.2 billion (led by Founders Fund)
• April 2026 (proposed): $25 billion

What Cognition Is Now

Cognition was founded in late 2023 by Scott Wu, Steven Hao, and Walden Yan to build Devin — an agent that could handle software development tasks end to end, including writing code, writing tests, debugging, and deploying. Devin launched in March 2024 to considerable attention, though early versions fell short of the fully autonomous vision in the launch demo.

The Windsurf acquisition changed the picture. Windsurf (formerly Codeium) was being pursued by Google, but that deal fell through after Google took the founding team in a $2.4 billion talent-licensing arrangement. Cognition stepped in and acquired the product, which gave them a large developer IDE audience alongside Devin’s enterprise agent business.

Windsurf 2.0, launched April 15, unified those two products. Devin is now available directly from the Windsurf editor: you plan work locally with Cascade, then hand it off to a Devin cloud session with one click. Devin runs on its own VM with a full desktop environment, handling debugging, deployment, and testing while you’re offline.

Why This Round Makes Sense Now

The timing follows a specific sequence of events. The SpaceX option deal for Cursor at $60 billion was announced April 21 and put a very large number on AI coding infrastructure. Cognition, which owns the IDE-plus-agent stack that most directly competes with Cursor’s direction, would benefit from the narrative that the market is pricing this category at scale.

Devin also had a credibility problem in its early months that the company has steadily addressed. The product shipped meaningfully, the enterprise ARR grew fast, and the Windsurf integration gave them a distribution channel beyond pure enterprise sales.

Whether the round closes at $25 billion, below it, or above it isn’t yet clear — Bloomberg noted the discussions are early and terms could change. But the direction is consistent with where the rest of the market has been moving this spring.

---

Sources: Bloomberg, SiliconAngle, Tech Funding News, Axentia