AI startup Windsurf sold to AI engineer Devin's maker Cognition just days after OpenAI acquisition fails and Google ‘poaches' CEO
is being acquired by
Cognition AI
, the makers of AI engineering tool Devin, for an undisclosed sum just days after news broke that OpenAI would not be acquiring the startup and that Google had hired away CEO
Varun Mohan
, co-founder
Douglas Chen
, and several R&D employees to join the
Google DeepMind
team.
Google's strategic talent raid leaves Windsurf vulnerable
Last week, Google DeepMind announced it had hired Windsurf CEO Varun Mohan and co-founder Douglas Chen, along with several R&D employees, while securing a non-exclusive license to Windsurf's technology, all for $2.4 billion. The move followed the breakdown of OpenAI's acquisition talks, where Microsoft's insistence on intellectual property access created insurmountable obstacles. The OpenAI deal was reported to be valued at $3 billion.
"Among all the teams in the AI space,
Cognition
was literally the one we have respected the most," Wang said in an email to employees Monday, announcing the deal that includes Windsurf's intellectual property, remaining workforce, and $82 million in annual recurring revenue.
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The Google deal left Windsurf in a precarious position as a standalone company, prompting weekend negotiations that resulted in Cognition's acquisition offer.
The acquisition caps off what Windsurf's interim CEO
Jeff Wang
described as "a really volatile time" for the startup, which saw its $3 billion acquisition deal with OpenAI collapse before Google swooped in to hire away key leadership and research staff.
Windsurf workers get financial protection in Cognition deal
Cognition, which develops the Devin AI coding assistant, structured the deal to include all remaining Windsurf employees, intellectual property, and assets. The company emphasized that all Windsurf staff would receive accelerated vesting schedules and financial participation in the transaction.
"Jeff and I worked together to ensure that every single employee is treated with respect and well taken care of," wrote Cognition CEO
Scott Wu
in a staff note.
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