## The Wild Ride of AI Coding: Cognition Snaps Up Windsurf After Google and OpenAI Drama
Hey tech enthusiasts! Get ready for some major news from the fast-paced world of AI coding. Cognition, the company behind the much-talked-about AI coding assistant Devin, has just announced a huge move: they're acquiring Windsurf, another hot startup in the AI coding space.
This isn't just any acquisition; it's the latest twist in a truly wild saga that unfolded over just a few days. Imagine a high-stakes bidding war, but with a dramatic last-minute twist!
Just before Cognition stepped in, Windsurf was at the center of a bidding frenzy. Google had just made headlines by essentially "reverse-acquiring" Windsurf – meaning they hired away Windsurf's CEO, co-founder, and top researchers for a whopping $2.4 billion, leaving much of the original team behind. This happened mere hours after a $3 billion offer from OpenAI to buy Windsurf outright had expired. Talk about a rollercoaster!
So, what does Windsurf bring to the table? They're known for their "AI-powered IDE," which is basically a super-smart coding environment that helps programmers write code more efficiently. Even though their business was smaller than some rivals, Windsurf had seen impressive growth, reaching $82 million in yearly subscription revenue (ARR) and attracting hundreds of thousands of daily users, including 350 enterprise customers. They even briefly hit $100 million ARR before a hiccup with their access to Anthropic's Claude AI models (which Cognition says they'll now restore!).
For Cognition, this acquisition is a game-changer. They're getting Windsurf's valuable technology and, crucially, the talented employees who weren't scooped up by Google. This means Cognition can now offer both its ambitious AI "junior programmer" Devin *and* Windsurf's popular smart coding environment. This versatility makes them a much stronger competitor against giants like OpenAI and Anthropic.
And here's a detail that's sure to make headlines: unlike the Google deal, Cognition has committed to ensuring that 100% of Windsurf employees will financially benefit from this acquisition, with their stock options fully honored. This is a big win for the Windsurf team after a tumultuous few days.
The AI coding space is heating up, with companies like Cursor also seeing massive success. Cognition, which was reportedly looking to raise hundreds of millions at a $4 billion valuation, is clearly gearing up for a serious fight. With Windsurf's tech and talent, and a recent win landing Goldman Sachs as a customer, Cognition is now a force to be reckoned with.
It's clear the future of coding is increasingly AI-powered, and this acquisition is a massive step forward for Cognition in that exciting race!
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