Workflow
Cognition AI Buys Windsurf After Google Licensing Deal
Bloomberg Technologyยท2025-07-15 20:04

Acquisition Overview - Cognition acquired Windsurf, viewing it as a complementary offering in the AI space [4] - The acquisition was structured as a clean cut from Google, with Windsurf's product, IP, go-to-market team, marketing team, and enterprise engineering team remaining intact [6][7] - The deal includes immediate consideration for all Windsurf employees, who are now part of Cognition [9] Strategic Fit and Synergies - Windsurf, an idea that helps developers code faster, complements Cognition's Devon, an AI software engineering agent [13][14] - The integration allows for a workflow where Devon can perform initial project tasks, with developers using Windsurf for finishing touches [14] - Both companies have a clear enterprise focus, with customers like Goldman Sachs, Citibank (rolling out Windsurf), and JP Morgan [2][15] Market Dynamics and Future Outlook - The acquisition aims to address the issue of valuable teams being left behind in aqua-hires [19][21] - Windsurf was previously considered for acquisition by OpenAI, but the deal did not materialize [11][12] - The deal structure resulted in wiping out the investors founder shares, making it an entirely employee owned company [21]