Cognition Acquires Windsurf to Power AI Coding Push

Cognition AI has officially acquired Windsurf, a development platform known for its integrated coding environment and strong enterprise client base. Announced on Monday, the acquisition marks a key milestone in Cognition’s broader effort to strengthen its position in the AI-powered software tools market.

The deal grants Cognition access to Windsurf’s intellectual property, product line, and brand, as well as its seasoned engineering, product, and go-to-market teams. More than 350 enterprise customers and $82 million in annual recurring revenue will also transfer under Cognition’s umbrella.

Although financial details remain undisclosed, the acquisition follows closely on the heels of Windsurf’s high-profile talks with Google, which announced a $2.4 billion talent and technology licensing deal with the company just last week.

The Windsurf acquisition reflects a growing trend in the AI industry: major players are racing to acquire not just software, but the teams behind the technology.

“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,” said Jeff Wang, Windsurf’s interim CEO, in an internal email shared with employees.

Cognition plans to integrate Windsurf’s assets into its flagship product, the autonomous coding agent Devin, while continuing to support Windsurf’s current operations independently in the short term.

OpenAI Considered $3B Windsurf Deal

Sources previously told Reuters that OpenAI had also held acquisition discussions with Windsurf. These talks, which spanned several months, reportedly could have valued the company at $3 billion, more than double the figure associated with its last reported valuation of $1.25 billion, according to PitchBook.

The outcome illustrates the fierce competition among AI firms, from Meta and Alphabet to rising startups, to lock in next-generation coding tools and the engineering talent required to scale them.

What’s Next for Cognition and Windsurf?

While Windsurf will remain operational as a standalone product for now, Cognition AI plans to make significant investments to fold Windsurf’s core technology into its growing AI toolset. With Devin already positioned as an advanced autonomous coding assistant, the integration could give Cognition a stronger foothold among enterprise customers seeking more intelligent, efficient development environments.

As enterprise demand grows for AI-powered productivity solutions, this deal signals a tightening race among tech leaders to shape the future of software engineering.