Cognition, creator of AI agent Devin, acquires Windsurf
In a dramatic turn of events highlighting the escalating competition in the AI development space, Cognition — the startup behind the viral AI coding agent Devin — announced on Monday that it has reached a definitive agreement to acquire fellow AI coding startup Windsurf. The acquisition follows a chaotic weekend of executive movements and failed bids that captivated the tech world and underscored just how fiercely contested the AI coding landscape has become.
Just days earlier, Windsurf had been at the center of a reverse-acquihire by Google, which saw the tech giant lure away Windsurf’s CEO Varun Mohan, co-founder Douglas Chen, and its top researchers in a $2.4 billion package. That move came hours after a $3 billion acquisition offer from OpenAI expired, leaving the rest of Windsurf’s 250-person team in limbo.
Now, with Cognition stepping in, the future of that remaining team — and Windsurf’s intellectual property — has found a new trajectory. According to a blog post by Cognition, the company is acquiring Windsurf’s products, IP, and remaining employees, many of whom were left behind in Google's executive-focused acquisition.
“The last 72 hours have been the wildest rollercoaster ride of my career,” wrote Jeff Wang, Windsurf’s interim CEO and former head of business, in a LinkedIn post. “To our new teammates at Cognition: we at Windsurf feel incredibly lucky to be joining a team that shares our vision, our deep commitment to our users, and – most importantly – our values.”
The financial terms of the deal were not disclosed, but Cognition emphasized Windsurf’s strong growth trajectory. The startup reportedly achieved $82 million in annualized recurring revenue (ARR), with enterprise ARR doubling quarter-over-quarter. Its user base includes over 350 enterprise clients and hundreds of thousands of daily active users, highlighting the company’s market traction.
Cognition plans to immediately integrate the Windsurf team into ongoing development efforts for Devin, its AI coding agent that recently gained widespread attention for its autonomous coding capabilities. Over time, Windsurf’s integrated development environment (IDE) and other proprietary technologies will be merged into Cognition’s broader product ecosystem.
The acquisition also comes with a notable commitment to employee equity. In contrast to the Google deal — which, according to The Information, left recent hires at Windsurf with no payout — Cognition says 100% of Windsurf’s remaining employees will financially participate in this transaction. The company has also waived vesting cliffs, ensuring all contributions made to date are recognized.
The whirlwind around Windsurf is just the latest signal of how intense the AI talent wars have become. With companies like OpenAI, Google, and Cognition racing to define the future of software development through AI, high-value acquisitions — and the scramble for elite engineering talent — are rapidly becoming the norm.
As the dust settles, the union of Cognition and Windsurf positions the newly combined team as a serious contender in the next generation of AI-powered developer tools.
