Cognition AI acquires Windsurf following Google’s $2.4B talent play

Cognition AI has acquired Windsurf, the popular enterprise-focused IDE platform, in a deal that adds firepower to its growing ambitions in enterprise software. The move comes just days after Google’s $2.4 billion agreement with Windsurf to secure licensing rights and gain access to top-tier engineering talent. The total amount of the deal was not disclosed.

Windsurf has become a hot commodity. Backed by investors like Kleiner Perkins, Greenoaks, and General Catalyst, the company had raised $243 million and was last valued at $1.25 billion a year ago, according to PitchBook. Its acquisition by Cognition AI signals a broader trend in the AI sector, where talent and IP are now just as important—if not more—than the products themselves.

AI Startup Cognition AI Acquires Windsurf  to Double Down on AI-Driven Coding

Google’s earlier deal focused on talent and licensing, but Cognition is getting a lot more. The acquisition includes Windsurf’s entire intellectual property, product line, brand, operations, and, perhaps most importantly, its engineering, product, and go-to-market teams.

Windsurf brings in $82 million in annual recurring revenue and serves more than 350 enterprise customers, Reuters reported. While neither company disclosed the financial terms, it’s clear that this isn’t a small tuck-in acquisition—it’s a major addition.

Jeff Wang, interim CEO of Windsurf, told employees in an email, “Among all the teams in the AI space, Cognition was literally the one we have respected the most, and they are a perfect fit to bring Windsurf to the next phase.”

For now, Windsurf will continue operating independently, but Cognition plans to invest heavily in merging the IDE platform’s tech into its own product suite. That includes Devin, the company’s flagship autonomous agent, which has been gaining traction in enterprise settings.

We first covered Cognition back in March 2024, when the AI startup unveiled Devin, its bold claim to the title of the world’s first AI software engineer capable of building entire software projects from the ground up.

Before closing the deal with Cognition, Windsurf had also been in talks with OpenAI about a potential acquisition. Sources familiar with those discussions say OpenAI considered valuing the company at $3 billion.

Between Google, OpenAI, and now Cognition, Windsurf has clearly found itself at the center of a high-stakes talent and technology tug-of-war—a sign of just how competitive the AI software market has become.

Cognition AI Team