Cognition Labs, the AI startup founded by Scott Wu, Walden Yan, and Steven Hao, has recently secured $175 million in funding, valuing the company at a staggering $2 billion. This significant investment, led by Peter Thiel's Founders Fund, highlights the growing confidence and interest in AI startups.

Cognition Labs, which launched its AI tool, Devin, in March, has experienced a remarkable growth trajectory. In just a few months, the company has managed to increase its valuation from $350 million to $2 billion, surpassing the valuations of other AI companies such as Mistral and Perplexity AI.

Mistral, a French AI company, is reportedly in talks to raise $533 million, which would push its valuation to $5.3 billion. This shows the growing interest in AI startups and their potential to revolutionize various industries.

Cognition Labs' rapid valuation increase can be attributed to the growing interest in AI-powered tools, particularly those that automate software development tasks. The launch of Devin, an AI software engineer, has significantly contributed to the company's latest valuation.

Devin, which can perform autonomous coding and fine-tune AI models, has shown promising results in resolving issues independently. With a 13.86% accuracy rate, it has surpassed the previous best model's accuracy rate of 1.96%.

Cognition Labs plans to use the new funds to further develop its products and enhance its AI capabilities. This investment in AI technology is a testament to the growing interest in AI-powered tools and their potential to transform various industries.