Cognition Absorbs Windsurf Assets as Meta Rethinks Open-Source AI
Major AI industry shifts occur as Cognition acquires Windsurf's remaining team and revenue, while Meta considers abandoning its open-source AI strategy. Google also launches a new multilingual Gemini Embedding API for developers.
Cognition acquires the remaining 250 employees and $82 million in annual recurring revenue from Windsurf after Google takes the startup's leadership in a separate deal. This consolidation brings advanced AI coding agents and integrated development environment capabilities directly into Cognition's portfolio. The acquisition also restores Windsurf's access to Claude models, which had been previously revoked during rumors of an OpenAI buyout.
Meta's newly established superintelligence lab is reportedly reconsidering its long-standing commitment to open-source artificial intelligence. Internal discussions are currently taking place regarding the potential retirement of the open Behemoth model as the company pivots toward a more closed, proprietary development approach. This potential strategic shift marks a significant departure from Meta's historical stance of freely releasing its large language models to the public.
On the engineering front, Google releases its first Gemini Embedding text model through the Gemini API and Vertex AI. This new embedding model supports over 100 languages, handles a maximum input of 2,048 tokens, and operates at a competitive cost of $0.15 per million tokens. Meanwhile, AI researchers are actively exploring new architectural concepts to enable large language models to "daydream" by randomly triggering memory retrieval to form abstract, creative links between unrelated ideas.