Cognition Acquires Windsurf to Boost AI Coding Agent Devin
Cognition Acquires Windsurf to Boost AI Coding Agent Devin
Cognition, the company behind the viral AI coding agent Devin, has officially acquired Windsurf, another AI-powered coding startup. This move comes during an intense period of competition in the AI coding space, with major tech players and startups racing to gain an edge in automated software development tools.
Background: A Competitive Acquisition
The acquisition follows a dramatic sequence of events. Just days before Cognition’s announcement, Google hired away Windsurf’s CEO Varun Mohan, co-founder Douglas Chen, and several research leaders in a $2.4 billion deal. The Google hiring spree happened shortly after OpenAI’s $3 billion acquisition offer for Windsurf expired, leaving the company open to other suitors.
With Windsurf’s leadership team joining Google, Jeff Wang—Windsurf’s former head of business—stepped in as interim CEO. Wang shared on LinkedIn, "The last 72 hours have been the wildest rollercoaster ride of my career." He expressed optimism about joining Cognition, highlighting a shared vision and commitment to users.
What Cognition Gains from the Deal
- Technology & IP: Cognition is acquiring Windsurf’s intellectual property and product suite, including its AI-powered integrated development environment (IDE).
- Talent: All Windsurf employees not hired by Google will join Cognition, ensuring ongoing development and integration of Windsurf’s innovations.
- Customers & Revenue: Windsurf had reportedly reached $82 million in annualized recurring revenue (ARR) and built a user base of 350 enterprise customers, with hundreds of thousands of daily users.
What’s Next for Devin and Windsurf’s Team
In the short term, Windsurf’s team will focus on enhancing Devin, Cognition’s flagship AI coder. Over time, Cognition plans to integrate Windsurf’s technology and capabilities into its own products, aiming to accelerate innovation in AI-driven software development.
Notably, Cognition emphasized that 100% of Windsurf employees will participate financially in the deal, with vesting cliffs waived—an important gesture after some employees missed out on payouts in Google’s earlier reverse-acquihire.
Industry Implications
The fierce interest in Windsurf underscores the high stakes in the AI coding market. With multiple billion-dollar deals and major tech companies involved, the sector is evolving rapidly. For businesses and developers, these moves signal the arrival of more powerful, enterprise-ready AI coding tools in the near future.
