Cognition acquired Windsurf gaining its AI-powered IDE, team, and IP to boost its coding tools. This move follows Google’s reverse-acquihire of Windsurf’s CEO and key leaders, and an expired $3 billion offer from OpenAI. Cognition is taking on Windsurf’s remaining team, product, and intellectual property, with all employees participating financially in the deal. Windsurf had reached $82 million in annual recurring revenue (ARR) and served hundreds of enterprise customers. The acquisition gives Cognition access to Windsurf’s technology and user base, positioning it to compete with major players like OpenAI, Anthropic, and Cursor. In the short term, Windsurf’s team will continue developing its IDE, while Cognition works on Devin, with plans to eventually integrate Windsurf’s capabilities into Cognition’s products.