Cognition, the new startup behind viral AI coding agent Devin, declared war on Monday. They have publicly announced a definitive agreement to acquire Windsurf, another innovative AI coding startup. This tactical decision comes on the heels of a rocky weekend for Windsurf. The company made headlines when its CEO Varun Mohan and co-founder Douglas Chen left to join Google, as did a number of R&D chiefs in a remarkable $2.4 billion reverse-acquihire.
Cognition detailed the acquisition in a blog post. They argued that all 250 employees of Windsurf will financially come out ahead as a result of the deal. The deal specifically eliminates vesting cliffs for Windsurf workers. This correction helps make sure that their contributions to the company are celebrated, even in the wake of this recent turmoil.
This acquisition is a godsend and couldn’t have come at a more opportune time. Almost all Windsurf employees, especially those who joined in the past year, are excluded from receiving any cash from Google’s reverse-acquihire agreement. However, this created equally challenging situations for a large part of the team following the high-profile departures.
Cognition’s acquisition will strengthen its development capabilities in AI coding technologies, adding new functionality to their flagship product Devin. The pact is part of a larger trend favoring consolidation in the tech industry. Manufacturers are moving aggressively to consolidate talent and technology to compete and win in cutthroat markets.
Jeff Wang, a representative from Cognition, commented on the recent developments, stating, “The last 72 hours have been the wildest rollercoaster ride of my career.” His comments reflect the stunning changes felt at Windsurf and the door that opened when Cognition acquired Windsurf.