Robinhood Ventures reportedly invested $10 million in AI coding startup Cognition as part of its more than $2 billion Series E round.
U.S.-based Cognition develops AI-powered software engineering tools. Its flagship product is Devin, an autonomous AI coding agent designed to help developers write, debug, test and maintain software, according to its website.
Robinhood's investment follows a $75 million bet on OpenAI in April, giving the Vlad Tenev-led firm exposure to competing AI coding tools in Cognition's Devin and OpenAI's Codex.
"It's not a winner-take-all market," Sarah Pinto, head of Robinhood Ventures, told Fortune on Friday, noting that Robinhood’s own engineers use multiple AI coding tools and it lets customers choose between different AI models to run its trading agents.
The Latent reached out to Robinhood Ventures for comment.
Cognition's $48 billion valuation
Robinhood's investment in the firm is a previously undisclosed detail from Cognition's more than $2 billion September funding round at a $48 billion valuation. The Series E round was led by new investors Andreessen Horowitz and Accel, alongside existing investors Founders Fund, General Catalyst and Avenir.
Benchmark, Bessemer, Kleiner Perkins, Greylock, Lightspeed, Altimeter, Bond Capital, Meritech, Atreides, Valor, T. Rowe Price, Lux, 8VC, D1, 137 Ventures, DST, Positive Sum, HOF, Soma, BoxGroup, Battery, Ribbit, Swish, Stripes, Definition, Hanabi, Journey, Bain Capital Ventures, Layer Global, A* Capital, Alpha Wave, Alkeon and Diffusion also participated in the round.
At the time, Cognition said its annualized revenue run rate had grown from $492 million in May to almost $900 million.
Robinhood's $10 million investment was made through Robinhood Ventures Fund I, a publicly traded closed-end fund that began trading on the New York Stock Exchange in March, giving retail investors exposure to private companies. Its portfolio also includes Databricks, Revolut and ElevenLabs. Rather than investing in those companies directly, investors can buy and sell shares in the fund on the stock exchange.
Robinhood told Fortune that the fund's net asset value (NAV) rose about 17% during Q3, its largest quarterly increase to date.