Cognition acquires Windsurf after failed OpenAI deal, key execs join Google

Published 14/07/2025, 20:10
© Reuters.

Investing.com -- Cognition has signed a definitive agreement to acquire AI coding startup Windsurf, following the collapse of Windsurf’s previously planned $3 billion acquisition by OpenAI.

The acquisition includes Windsurf’s intellectual property, product, trademark, brand, and business operations. Cognition emphasized that all Windsurf employees will participate financially in the transaction, with vesting cliffs waived and accelerated vesting for work completed to date.

This development comes after OpenAI’s attempted acquisition of Windsurf fell apart due to concerns regarding Microsoft (NASDAQ:MSFT)’s potential access to Windsurf’s technology, which could conflict with Microsoft’s competing Copilot product.

Following the end of the exclusivity period with OpenAI, Windsurf formed a strategic partnership with Google (NASDAQ:GOOGL). In a separate $2.4 billion deal, Google hired several key Windsurf personnel, including CEO Varun Mohan, co-founder Douglas Chen, and multiple researchers from the R&D team. These executives have joined Google’s DeepMind division to advance the company’s agentic coding initiatives, particularly for the Gemini platform.

Cognition, known for developing autonomous coding agents including its product Devin, plans to integrate Windsurf’s agentic integrated development environment (IDE) with its existing technology. The combined capabilities aim to enable developers to plan tasks in an IDE powered by Devin’s codebase understanding, delegate work to multiple Devin instances simultaneously, complete high-priority components with autocomplete assistance, and integrate everything within the same IDE.

Both companies share a vision for the future of software engineering, according to Cognition’s announcement.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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