Cognition, maker of the AI coding agent Devin, acquires Windsurf

Cognition, the innovative company known for its AI coding agent Devin, has made headlines by announcing its acquisition of AI startup Windsurf. This decision was shared in a blog post on Monday, just days after a significant shake-up where Google successfully recruited Windsurf's CEO Varun Mohan and co-founder Douglas Chen, among other research leaders, in a staggering $2.4 billion deal. This unexpected twist left Windsurf's remaining team of 250 members in a state of uncertainty. The whirlwind surrounding Windsurf intensified after OpenAI's $3 billion acquisition offer lapsed, prompting the startup to seek alternative opportunities. Jeff Wang, who recently stepped in as interim CEO of Windsurf, reflected on the dramatic events via LinkedIn, stating, "The last 72 hours have been the wildest rollercoaster ride of my career." He expressed excitement about joining Cognition, emphasizing shared visions and values between the two teams. Cognition's acquisition includes Windsurf’s intellectual property and products, such as its AI-driven integrated development environment (IDE), along with all employees not recruited by Google. While the financial details of the acquisition remain undisclosed, Cognition highlighted that Windsurf had achieved an impressive $82 million in annualized recurring revenue (ARR), with enterprise ARR reportedly doubling each quarter. The startup has also amassed a robust user base, boasting at least 350 enterprise customers and “hundreds of thousands” of daily active users. Moving forward, Windsurf's team will concentrate on enhancing Devin, Cognition’s AI coding agent, in the near term. Cognition plans to integrate Windsurf’s technology and capabilities into its suite of products in the future. Additionally, Cognition reassured Windsurf’s employees that they would all benefit financially from this deal, with vesting cliffs being waived for their contributions. This story is still evolving, and further developments are anticipated.