Sep 9, 2025Memo
Raised $400M with $150M ARR at $10.2B valuation
Cognition(Devin+Windsurf), has rapidly scaled its annual recurring revenue to more than $150 million ARR in 2025, following the acquisition of Windsurf.
Devin, launched in March 2024 as the world’s first AI software engineer, grew from $1M ARR in September 2024 to $73M ARR by June 2025, reflecting exponential adoption as developers embraced autonomous agents for real-world engineering tasks.
The addition of Windsurf more than doubled ARR, with combined enterprise revenue up 30% in just seven weeks post-acquisition, underscoring Cognition’s momentum in the AI coding space.
At its core, Cognition builds AI agents and IDE tools designed to redefine software engineering workflows. Devin acts as an autonomous coding agent that can take on entire tasks asynchronously, while Windsurf provides a next-generation IDE where engineers can code with AI assistance while retaining decision control.
Together, they address two complementary needs: accelerating individual developer productivity and empowering enterprises to scale engineering output. Customers including Goldman Sachs, Citi, Dell, Cisco, Ramp, Palantir, Nubank, and Mercado Libre are already leveraging this dual product suite, proving its enterprise-grade impact.
Financially, Cognition has raised over $400 million in funding at a $10.2 billion post-money valuation, led by Founders Fund with participation from Lux, 8VC, Neo, Elad Gil, and others.
With less than $20M net burn across its history, the company has achieved remarkable capital efficiency while scaling rapidly. The acquisition of Windsurf not only expanded the product portfolio but also brought on a world-class team, strengthening Cognition’s ability to execute its mission: advancing the frontier of AI coding agents and building the future of software engineering.
Jul 14, 2025Memo
Cognition acquired Windsurf
Cognition acquired Windsurf gaining its AI-powered IDE, team, and IP to boost its coding tools.
This move follows Google’s reverse-acquihire of Windsurf’s CEO and key leaders, and an expired $3 billion offer from OpenAI. Cognition is taking on Windsurf’s remaining team, product, and intellectual property, with all employees participating financially in the deal.
Windsurf had reached $82 million in annual recurring revenue (ARR) and served hundreds of enterprise customers. The acquisition gives Cognition access to Windsurf’s technology and user base, positioning it to compete with major players like OpenAI, Anthropic, and Cursor.
In the short term, Windsurf’s team will continue developing its IDE, while Cognition works on Devin, with plans to eventually integrate Windsurf’s capabilities into Cognition’s products.
