Cognition Acquires Windsurf in a Game-Changing Move for AI-Powered Coding

n a blockbuster move for the AI coding industry, Cognition, the startup behind the viral AI coding agent Devin, announced on Monday that it has signed a definitive agreement to acquire Windsurf, a leading innovator in agentic integrated development environments (IDEs).

This acquisition marks a pivotal moment in the rapidly evolving race to redefine software development through artificial intelligence.

A Strategic Acquisition to Redefine Software Engineering

Cognition’s announcement highlights the acquisition of Windsurf’s intellectual property, product, trademark, brand, and, most importantly, its world-class team.

The deal also ensures that 100% of Windsurf’s 250-person team will participate financially, with all vesting cliffs waived and fully accelerated vesting for their contributions to date.

This employee-centric approach underscores Cognition’s commitment to honoring the talent and hard work that built Windsurf into a powerhouse in the AI coding space.

In their announcement, Cognition shared their excitement:

“We’re excited to share that Cognition has signed a definitive agreement to acquire Windsurf, the agentic IDE. The acquisition includes Windsurf’s IP, product, trademark and brand, and strong business. Above all, it includes Windsurf’s world-class people, whom we’re privileged to welcome to our team.”

The acquisition comes on the heels of a dramatic weekend in the AI coding world. Just days ago, Google executed a $2.4 billion reverse-acquihire, hiring away Windsurf’s CEO Varun Mohan, co-founder Douglas Chen, and key research leaders .

This move followed the expiration of a $3 billion offer from OpenAI to acquire Windsurf, opening the door for Cognition to swoop in and secure the deal.

A Powerful Combination: Devin + Windsurf

Cognition’s flagship product, Devin, is a fully fledged AI coding agent capable of automating tasks as if it were a junior software engineer. Windsurf, on the other hand, has pioneered the agentic IDE, a revolutionary approach to in-IDE coding experiences.

Together, the two companies aim to create a seamless, powerful workflow for developers. As Cognition stated:

“At Cognition, we have focused on developing robust and secure autonomous agents, while Windsurf has pioneered the agentic IDE.

Devin + Windsurf are a powerful combination for the developers we serve. Working side by side, we’ll soon enable you to plan tasks in an IDE powered by Devin’s codebase understanding, delegate chunks of work to multiple Devins in parallel, complete the highest-leverage parts yourself with the help of autocomplete, and stitch it all back together in the same IDE.”

In the immediate term, the Windsurf team will continue operations as usual, with plans to integrate their unique capabilities and IP into Cognition’s products over the coming months. This strategic alignment is set to accelerate Cognition’s mission of building the future of software engineering.

Windsurf’s Enthusiasm for the Future

Windsurf’s team is equally thrilled about the partnership. In their own announcement, they declared:

“The show goes on! Announcing the real next chapter of Windsurf - we’re joining forces with @cognition_labs, the creators of Devin, to reinvent AI coding. Let’s surf.”

Jeff Wang, CEO of Windsurf, shared his excitement on LinkedIn, describing the whirlwind 72 hours leading up to the deal:

“The last 72 hours have been the wildest rollercoaster ride of my career. I’m beyond thrilled to share that Windsurf is joining forces with Cognition, the legendary team behind Devin, to reinvent the future of software development. Together, we’re going to redefine the future of software development.”

Wang also expressed gratitude for his team’s resilience and dedication during this turbulent period, emphasizing the shared vision and values between Windsurf and Cognition.

“To our new teammates at Cognition: we at Windsurf feel incredibly lucky to be joining a team that shares our vision, our deep commitment to our users, and - most importantly - our values. Let’s go win.”

A New Peak in the AI Coding Race

The frenzy surrounding Windsurf reflects the intense competition in the AI-powered coding space, particularly in the development of AI-driven IDEs.

Companies like Cursor and Windsurf have seen explosive growth, with Cursor reportedly reaching $500 million in annualized recurring revenue (ARR)

Cognition’s acquisition of Windsurf signals a new peak in this race, positioning the combined entity as a formidable player in the quest to transform how developers work.

Russell Kaplan, a key figure at Cognition, summed up the excitement on social media:

“Incredibly excited to share that Cognition is acquiring Windsurf. What an insane weekend - from first call after 5pm on Friday to a signed definitive agreement this morning. There’s a lot to build!”

What’s Next?

With Cognition and Windsurf joining forces, the stage is set for a transformative leap in AI-powered software development. By combining Devin’s autonomous coding capabilities with Windsurf’s agentic IDE, the two companies are poised to deliver a groundbreaking experience for developers—one that promises to streamline workflows, boost productivity, and redefine the possibilities of software engineering.

As Cognition and Windsurf embark on this new chapter, the tech world is watching closely. This acquisition is more than a business deal; it’s a bold step toward a future where AI and human ingenuity work hand in hand to create software faster, smarter, and better than ever before.