Cognition Acquires Remaining Windsurf Team After Google Scoops Up Startup Leadership
Cognition, the creator of the AI coding agent Devin, acquires the IP, product, and remaining employees of Windsurf following a massive Google acquihire of the startup's top executives. The deal highlights the fierce competition in the AI-powered IDE market as Windsurf reports $82 million in ARR.
Cognition, the startup behind the popular AI coding agent Devin, signs a definitive agreement to acquire AI coding startup Windsurf. This move comes just days after Google hires away Windsurf’s CEO, co-founder, and research leaders in a $2.4 billion reverse-acquihire that leaves most of the 250-person team behind. Google's deal occurs just hours after OpenAI's $3 billion offer to acquire Windsurf expires.
The intense bidding war for Windsurf highlights the explosive growth and fierce competition in the AI-powered integrated development environment (IDE) market. While Windsurf operates in the shadow of competitor Cursor, which boasts $500 million in annualized recurring revenue (ARR), Windsurf still achieves impressive numbers. Cognition reports that Windsurf reaches $82 million in ARR with a user base of 350 enterprise customers and hundreds of thousands of daily active users.
Under the terms of the acquisition, Cognition takes on Windsurf's IP, its AI-powered IDE product, and all employees who remain after Google's aggressive hiring spree. In the near term, the Windsurf team continues developing its existing IDE while Cognition focuses on Devin, but the company eventually plans to integrate Windsurf's capabilities into its own products. The dramatic 72-hour turnaround leaves interim CEO Jeff Wang expressing excitement about joining forces with Cognition to pursue their shared vision.