Cognition, the startup behind Viral AI Coding Agent Devin, announced in a blog post Monday that it has signed a decisive agreement to acquire AI coding startup Windsurf.
The announcement comes days after Google hired Windsurf CEO Varun Mohan, co-founder Douglas Chen, and Research Leaders on a $2.4 billion deal, and Reverse Ackhia, who left the remaining 250-person team at Startup. Google's deal came just hours after Windsurf's expired Openai's $3 billion offer, clearing the way AI coding startups explore other options.
The frenzy to get Windsurf represents a new peak in insane races for developing AI coding products.
“The last 72 hours have been the wildest roller coaster ride of my career,” said Jeff Wang, former business manager at Windsurf, who became interim CEO of the startup a few days ago after Google hired Startup leader in a LinkedIn post. “For our new teammates at Cognition: We at Windsurf feel incredibly lucky to be involved in our vision, our deep commitment to our users and, most importantly, our teams that share our values.”
Cognition says it has acquired Windsurf IP and products, including an AI-powered integrated development environment (IDE), along with all employees not employed by Google.
The recognition did not announce the price of Windsurf acquired. However, the company says Windsurf has hit $82 million in annual recurring revenue (ARR), and Enterprise ARR doubled quarterly. Cognition says Windsurf's user base has reached at least 350 enterprise customers and “hunds of thousands” of daily active users.
The Windsurf team focused on building Devin, Cognition's AI coding agent, in the midterm, the company said in a press release. Ultimately, cognition states that it integrates Windsurf's IP and capabilities into its own product.
Over the weekend, the information reported that Windsurf employees who participated last year were not paid on Google's $1 billion reverse-appearing here. Acknowledge notes in a blog post that 100% of Windsurf employees will be participating financially in this transaction and abandoning the vesting cliff for previous work.
This is a developmental story…