Cognition AI to acquire Windsurf

GlobalData

Tue, Jul 15, 2025, 4:06 AM 2 min read

Cognition AI, a San Francisco-based AI company, has signed an agreement to acquire Windsurf, an AI code generation company, for an undisclosed price.

The transaction covers Windsurf’s intellectual property, product line, brand, and business operations. It also includes the California-based company's engineering, product, and go-to-market teams.

According to Cognition AI, Windsurf brings $82m in annual recurring revenue (ARR) and a customer base of more than 350 enterprises, along with hundreds of thousands of daily active users.

Windsurf’s enterprise ARR, which comes through its integrated development environment (IDE) platform, is claimed to have been doubling quarter-on-quarter. The company will continue to operate as before in the immediate term.

Over the coming months, Cognition AI plans to integrate Windsurf’s IDE platform and technology into its own products, including its autonomous software engineering agent, Devin.

Windsurf interim CEO Jeff Wang, in an email to employees, wrote: “Among all the teams in the AI space, Cognition was literally the one we have respected the most, and they are a perfect fit to bring Windsurf to the next phase.”

Cognition AI expects that combining Devin’s existing adoption with Windsurf’s IDE platform and go-to-market infrastructure will enable it to scale faster in enterprise software engineering.

The acquisition follows a separate licensing deal that was reported recently between Google and Windsurf. This agreement, reportedly worth $2.4bn, does not involve ownership, and allows Google to use specific Windsurf technologies to advance its AI coding initiatives.

Windsurf’s former CEO Varun Mohan and co-founder Douglas Chen have joined Google’s DeepMind division to work on agentic coding projects, including the Gemini programme. Jeff Wang remains interim CEO at Windsurf, with Graham Moreno as president.

Most of the company’s workforce will stay, focusing on enterprise customers.

Windsurf was valued at $1.25bn a year ago, according to PitchBook. The company has raised $243m from investors such as Kleiner Perkins, Greenoaks, and General Catalyst.

In June 2025, reports surfaced that Windsurf had held acquisition talks with OpenAI, which could have valued the company at $3bn. A month prior to that, Windsurf had launched the SWE-1 family of AI models aimed at expanding software engineering automation beyond code generation, thereby positioning itself in frontier model development for software-related tasks.

"Cognition AI to acquire Windsurf" was originally created and published by Verdict, a GlobalData owned brand.