Cognition AI acquires Windsurf’s IP, products, and teams, strengthening its position in enterprise software after Google’s recent licensing deal.
Artificial intelligence startup Cognition AI on Monday agreed to acquire Windsurf, an integrated development environment platform, strengthening its position in the rapidly evolving enterprise software market.
The deal follows Google’s $2.4 billion deal with Windsurf last week aimed at acquiring top talent and securing licensing rights to its technology.
The deal with Google marks a win for Windsurf’s backers. According to PitchBook, Windsurf has raised $243 million from investors including Kleiner Perkins, Greenoaks, and General Catalyst and was last valued at $1.25 billion one year ago.
The move reflects a broader trend among technology giants such as Alphabet and Meta, which are making bold, high-value acquisitions and offering lucrative compensation packages to secure leading industry talent amid intensifying competition in the AI sector.
The deal with Cognition covers Windsurf’s intellectual property, product line, brand, and business operations, as well as its highly regarded engineering, product, and go-to-market teams.
While the deal’s financial terms were not disclosed, Windsurf brings $82 million in annual recurring revenue and a customer base of more than 350 enterprises.
“Among all the teams in the AI space, Cognition was literally the one we have respected the most, and they are a perfect fit to bring Windsurf to the next phase,” Jeff Wang, Windsurf’s Interim Chief Executive Officer, said in an email to employees.
In the immediate term, Windsurf will continue to operate independently, with Cognition pledging significant investment to integrate Windsurf’s technology and unique assets into its own product suite, including its flagship autonomous agent, Devin.
Earlier, sources familiar with the matter told Reuters in June that Windsurf had been engaged in months-long discussions with OpenAI regarding a potential acquisition that could have valued the company at $3 billion.
