EXCLUSIVE: Robinhood bets $10 million on AI coding tool maker Cognition—after previously backing a rival

Robinhood Ventures is investing $10 million in AI coding tool startup Cognition, following a previous $75 million investment in OpenAI. The venture arm's head, Sarah Pinto, defends backing multiple competitors, stating the AI coding market isn't a winner-take-all scenario. Cognition's Series E funding round, raising over $2 billion at a $48 billion valuation, was completed in September.

Cognition's annualized revenue run rate is reported at nearly $900 million, up from $492 million in May. The investment is part of Robinhood Ventures Fund I, a publicly traded closed-end fund, providing retail investors exposure to high-growth private companies. The company cites Cognition cofounder Scott Wu's visionary leadership and consistent AI-focused outlook as key factors in the decision.