Cognition AI has announced the acquisition of Windsurf, a fast-growing development platform, in a move that reflects rising competition in the enterprise AI software space. The deal deepens Cognition’s commitment to building autonomous agents for code generation and expands its reach in developer-focused tools.
A strategic response to tech’s talent race
The acquisition comes on the heels of Windsurf’s high-profile interactions with major players. Just last week, Google finalised a $2.4 billion deal with Windsurf, targeting licensing rights and key talent. Cognition’s deal, by contrast, focuses on consolidating the company’s product suite, integrating Windsurf’s tools, team, and intellectual property to strengthen its AI development ecosystem.
Though terms of the deal were not disclosed, Windsurf arrives with an impressive customer base of over 350 enterprises and $82 million in annual recurring revenue. The company had previously raised $243 million from major investors including Kleiner Perkins and Greenoaks, and was valued at $1.25 billion last year.
Integration with Devin and future expansion
Windsurf will continue operating independently for the near term, while Cognition begins integrating its technology into its flagship autonomous agent, Devin. The goal is to streamline software development for enterprises through end-to-end automation of complex coding tasks.
In a note to employees, Windsurf’s interim CEO Jeff Wang called Cognition the “perfect fit” to lead the company into its next chapter, citing shared values and long-term vision for enterprise-scale AI.
The broader AI M&A momentum
The acquisition underscores a wider trend in the AI sector, where top firms like Alphabet and Meta are rapidly acquiring startups not just for products, but for elite talent. Windsurf, which was also in discussions with OpenAI earlier this year for a potential $3 billion deal, has remained in high demand due to its engineering expertise and strong market footprint.
As AI adoption continues to mature, this deal positions Cognition AI to offer more robust solutions to enterprises looking to integrate intelligent agents into their software workflows — marking another step forward in the automation of development itself.
This story was first covered by Reuters.
