Cognition AI Acquires Windsurf Amid Talent Battle

MENLO PARK, Calif. — Cognition AI Inc. announced on Monday that it will acquire Windsurf, an AI coding company that recently lost its CEO and several other senior employees. The acquisition involves Windsurf’s intellectual property, products, trademarks, and team, though financial terms were not disclosed.

This deal comes as companies like Google and OpenAI intensify their competition for AI talent. OpenAI had been in discussions to acquire Windsurf earlier this year, but those talks fell through amidst executive departures. Recently, Google secured Windsurf’s co-founder and CEO Varun Mohan, paying $2.4 billion in licensing fees and compensation, according to reports.

Cognition’s CEO Scott Wu addressed employees in a memo, emphasizing that all new hires, including Windsurf employees, would be treated with transparency and respect. “After today, our efforts will be as a united and aligned team. There’s only one boat and we’re all in it together,” he wrote.

While neither Cognition nor Windsurf responded to media requests for comment, Cognition has positioned itself prominently in the AI sector with its product Devin, an agent aimed at expediting software development. The startup has secured investments totaling hundreds of millions of dollars, valuing it at nearly $4 billion as of March.

Wu assured Windsurf’s employees that they would be financially included in the acquisition. He insisted that all employees would have vesting cliffs waived and receive fully accelerated vesting for their work to this point, stating, “There’s never been a more exciting time to build.”