AI Coding Firm Cognition Acquires Windsurf, Creator of Devin
▼ Summary
– Cognition, the startup behind AI coding agent Devin, announced it will acquire AI coding startup Windsurf, including its IP, product, and remaining employees not hired by Google.
– Google recently hired Windsurf’s CEO, co-founder, and research leaders in a $2.4 billion deal, following the expiration of OpenAI’s $3 billion acquisition offer.
– Windsurf’s team will initially focus on enhancing Devin before integrating its IP into Cognition’s products, with the startup having $82M in annualized recurring revenue and 350+ enterprise customers.
– Cognition confirmed all Windsurf employees will receive financial benefits in the deal, with vesting cliffs waived, unlike Google’s deal which excluded recent hires.
– The acquisition highlights the intense competition in AI coding, with Windsurf’s former head of business calling the process a “wild rollercoaster.”
The AI coding landscape just witnessed a major shakeup as Cognition, creator of the groundbreaking Devin coding assistant, finalized its acquisition of rival firm Windsurf. This strategic move comes after a whirlwind series of events that saw Google poach Windsurf’s top executives in a massive $2.4 billion deal, while OpenAI’s competing $3 billion offer expired without action.
Industry observers describe the situation as unprecedented in the fiercely competitive AI development sector. Jeff Wang, Windsurf’s interim CEO following the executive exodus, called the past three days “the wildest rollercoaster ride” of his professional life in a heartfelt LinkedIn post. He expressed enthusiasm about joining forces with Cognition, citing shared values and commitment to users.
The acquisition includes Windsurf’s intellectual property and its AI-powered integrated development environment, along with the remaining 250-person team not recruited by Google. While financial terms remain undisclosed, Cognition revealed that Windsurf had achieved $82 million in annual recurring revenue, with enterprise contracts doubling every quarter. Their customer base reportedly includes 350 enterprise clients and hundreds of thousands of daily users.
Cognition plans to initially deploy Windsurf’s team to enhance Devin’s capabilities, with longer-term plans to fully integrate Windsurf’s technology into their product ecosystem. The deal also addresses recent concerns about employee compensation – Cognition confirmed all Windsurf staff will receive financial participation in this transaction, with immediate vesting of previously earned equity.
This development follows reports that recent Windsurf hires missed out on payouts from Google’s selective talent acquisition. The rapid succession of billion-dollar offers and counteroffers underscores the intense demand for top AI coding talent and technology as major players jockey for position in this transformative market.
(Source: TechCrunch)
