In a whirlwind week for the AI world, Cognition has scooped up Windsurf’s core assets days after Google lured away its co-founder and CEO in a $2.4 billion licensing splash. Here’s why this surprise move matters in the escalating AI arms race.
In a dramatic twist that shows just how heated the race for AI talent has become, artificial intelligence startup Cognition announced Monday it’s buying fellow AI firm Windsurf—mere days after Google poached Windsurf’s co-founder and CEO, Varun Mohan, along with other senior leaders.
The deal, which covers Windsurf’s intellectual property, product, trademark, brand, and remaining talent, comes with no disclosed price tag but sends a clear message: the war for AI engineers is just getting started.
Just last week, Google revealed it had struck a $2.4 billion licensing and compensation deal to secure Mohan and other top Windsurf minds—days after OpenAI’s reported $3 billion acquisition talks for Windsurf fell through back in April.
Key Takeaways:
- Cognition is buying Windsurf’s IP, product, and brand right after Google hired Windsurf’s CEO.
- Google is paying $2.4 billion for licensing and talent compensation.
- Windsurf employees keep their stakes and get accelerated vesting under Cognition.
- Both startups are backed by Peter Thiel’s Founders Fund.
In an internal memo shared with staff, Cognition CEO Scott Wu tried to calm any lingering concerns, promising all new Windsurf hires will be treated with “transparency, fairness, and deep respect.”
“After today, our efforts will be as a united and aligned team,” Wu wrote. “There’s only one boat and we’re all in it together.”
Windsurf’s interim CEO Jeff Wang echoed the sentiment on X (formerly Twitter), writing, “Trying times reveal character, and I couldn’t be prouder of how every single person at Windsurf showed up these last three days for each other and for our users.”
This acquisition ensures Windsurf’s remaining employees are taken care of financially—vesting cliffs waived, full acceleration granted, and a clear seat at the table as they merge with Cognition’s growing operation.
For Cognition, this move is also about shoring up its flagship product: Devin, an AI coding agent designed to help engineers write software faster than ever. The startup reportedly holds a valuation close to $4 billion, with funding from deep-pocketed backers like Peter Thiel’s Founders Fund—which also backed Windsurf—alongside Greenoaks, Kleiner Perkins, and General Catalyst.
So what’s next? Expect more surprise moves, big checks, and bold hiring raids. Silicon Valley’s biggest names—Meta, Google, OpenAI, and now Cognition—are battling for every bit of AI brainpower they can get.
In an industry moving this fast, no one wants to be left behind. And for Windsurf’s team, at least, this abrupt pivot might be the lifeline they needed.
As Wu put it, “There’s never been a more exciting time to build.”