Cognition is set to acquire AI coding startup Windsurf after Google moved quickly to recruit its top leadership. This strategic twist comes just after Google hired Windsurf’s CEO and several senior executives, leaving many to wonder about the startup’s future as an independent player.
Jeff Wang, Windsurf’s interim CEO, described the move as a ‘perfect fit’ that promises to boost engineers’ productivity. He even called the past 72 hours ‘the wildest rollercoaster ride’ of his career in a recent LinkedIn post. Meanwhile, Cognition’s CEO reassured everyone that all Windsurf employees will be well looked after, with immediate equity vesting being one of the key benefits.
Previously, OpenAI had shown interest in acquiring Windsurf in a US $3 billion deal, but negotiations fell apart over disagreements with Microsoft regarding intellectual property sharing. Cognition, backed by Khosla Ventures and Founders Fund and having raised $175 million just six months into its journey, was last valued at $4 billion according to Bloomberg.
Amid the flurry of changes, concerns about equity vesting naturally surfaced. Scott Wu, Cognition’s cofounder and CEO, confirmed that every Windsurf employee would benefit financially from the deal. At the same time, Amjad Masad, CEO of Replit—a fellow coding platform—invited Windsurf staff to join his startup, which is geared towards steady, long-term growth rather than immediate acquisition.
Looking ahead, Cognition plans to integrate Windsurf’s expertise into its AI developer product, Devin, further strengthening its offering. In a light-hearted note, Wang mentioned that even the relationship with Anthropic, which had recently restricted access to its latest AI models, has warmed up once again.
If you’ve ever worried about sudden industry shifts, this news strikes a balance between uncertainty and opportunity. Keeping an eye on such changes might just give you that extra edge in navigating the ever-evolving tech landscape.
