A New Power Player in AI Coding Emerges
In a dramatic turn of events that underscores the white-hot race in AI development, Cognition, the startup behind the AI coding agent Devin, has acquired Windsurf, an AI-powered IDE startup that recently made headlines for losing its leadership team to a billion-dollar reverse-acquihire by Google.
The deal was confirmed in a blog post by Cognition, just hours after the dust settled from a chaotic weekend in Silicon Valley. Windsurf, which had garnered attention from top players like OpenAI and Anthropic, is now officially part of the Cognition ecosystem.
From OpenAI to Google to Cognition: The Wild 72-Hour Chase
Windsurf’s fate took a sharp turn over the weekend:
- OpenAI’s $3B acquisition offer expired.
- Google swooped in with a $2.4B reverse-acquihire, hiring CEO Varun Mohan and other senior leaders.
- Within hours, Cognition made its move—securing the IP, product, and remaining team.
Russell Kaplan, President of Cognition, shared that the first call to Windsurf happened Friday after 5 PM, and the deal was signed by Monday morning.
“The last 72 hours have been the wildest rollercoaster ride of my career,” said interim Windsurf CEO Jeff Wang on LinkedIn.
Why Windsurf Matters in the AI IDE Space
Windsurf has been a rising star in the AI-powered integrated development environment (IDE) sector. Though smaller than rival Cursor, it boasted:
- $82 million in ARR
- 350+ enterprise customers
- “Hundreds of thousands” of daily active users
Despite losing access to Anthropic’s Claude models in June—causing some churn to Cursor—Windsurf remained a critical player. Now, as part of Cognition, it regains full access to Claude and enters a new phase of growth.
A Deal That Puts Employees First
Unlike Google’s reverse-acquihire, which excluded newer employees from any payout, Cognition confirmed that:
- 100% of Windsurf’s remaining employees will benefit financially
- Vesting cliffs are waived for their prior contributions
This people-first approach could strengthen Cognition’s internal culture and help it retain top AI talent.
Cognition’s Expanding Arsenal: Devin + IDE
Cognition is now uniquely positioned to offer both AI coding agents and a full IDE platform:
- Devin: Marketed as the first fully autonomous AI coding agent, Devin goes beyond assistance to full task automation.
- Windsurf IDE: Provides a developer-friendly environment to interact with AI tools — now supercharged under Cognition’s roof.
This dual capability may give Cognition an edge over OpenAI, Cursor, and Anthropic, who are still focused on either agents or IDEs, but not both.
What’s Next for Cognition?
While Cognition hasn’t disclosed the exact acquisition price, insiders suggest this is a strategic power move to scale up. In March, Cognition was reportedly in talks to raise hundreds of millions at a $4 billion valuation. With clients like Goldman Sachs already on board, the Windsurf acquisition could tip the balance in Cognition’s favor.
Final Thoughts
The AI coding landscape is evolving fast, and this acquisition signals a convergence of AI agents and AI IDEs. With its expanded team, growing customer base, and now two powerful platforms, Cognition is no longer just a bold startup—it’s becoming a serious threat to the established giants.