Artificial intelligence startup Cognition has announced its acquisition of Windsurf, an AI coding company, just days after Google hired away Windsurf’s CEO and several other senior employees. The move highlights the intense competition for top talent in the AI sector.
In a statement, Cognition confirmed it will purchase Windsurf’s intellectual property, product, trademark, brand, and talent. The financial terms of the transaction were not disclosed.
The acquisition follows a dramatic series of events for Windsurf. OpenAI had reportedly been in talks to acquire the company for approximately $3 billion in April, but the deal ultimately collapsed. Shortly thereafter, Google announced it had hired Windsurf’s co-founder and CEO, Varun Mohan, in a deal valued at $2.4 billion for licensing fees and compensation.
Cognition is the developer of Devin, an AI coding agent designed to help engineers build software more efficiently. The startup raised hundreds of millions in funding as of March, reaching a valuation of nearly $4 billion. Both Cognition and Windsurf share an investor in Peter Thiel’s Founders Fund. Windsurf’s other backers include Greenoaks, Kleiner Perkins, and General Catalyst.
In a memo to employees, Cognition CEO Scott Wu emphasized a unified future for the combined teams. “Every new employee of Cognition will be treated the same way as existing employees: with transparency, fairness, and deep respect for their abilities and value,” Wu wrote. He added that all former Windsurf employees will participate financially in the deal, with waived vesting cliffs and fully accelerated vesting for their work to date.
“There’s never been a more exciting time to build,” Wu concluded in the memo. “After today, our efforts will be as a united and aligned team. There’s only one boat and we’re all in it together.”
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