OpenAI deal for Windsurf falls apart
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Cognition is acquiring Windsurf days after Google DeepMind hired its CEO and research leaders, and months after OpenAI offered to buy it.
Cognition acquires AI coding startup Windsurf, gaining its IP, talent, and user base, strengthening its position to compete with OpenAI, Cursor, and Anthropic.
In an unexpected turn of events, artificial intelligence startup Cognition announced this week that it is acquiring AI coding startup Windsurf, just days after news that OpenAI’s planned $3 billion buy of Windsurf had fallen apart.
Google hired Windsurf’s core team and licensed its AI tech for $2.4B to support agentic coding in DeepMind’s Gemini project.
Windsurf faces acquisition by Cognition AI. This follows a collapsed deal with OpenAI. Google hired Windsurf's CEO Varun Mohan and co-founder Douglas Chen. Google DeepMind also secured a license to Windsurf's tech for $2.
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Cognition CEO Scott Wu and interim Windsurf CEO Jeff Wang said they would start by integrating the AI-powered engineer Devin into Windsurf.
OpenAI is the world's leading AI startup. For how long will depend on how well it fends off multi-front attacks from competitors like Meta and Google.