Cognition AI Acquires Windsurf After Google Deal, Gaining IP, Product, and Brand

Cognition AI has acquired the remaining shares of Windsurf after Google brokered a $2.4 billion deal to license Windsurf's AI technology and hire its top talent. Cognition gains Windsurf's IP, product, trademark, and brand in the deal. Financial terms were not disclosed.

In a strategic move to bolster its position in the enterprise software market, Cognition AI has acquired the remaining shares of Windsurf following Google's $2.4 billion deal to license Windsurf's AI technology and hire its top talent. The acquisition, announced on July 02, 2025, includes Windsurf's intellectual property, product line, brand, and business operations, as well as its highly regarded engineering, product, and go-to-market teams [3].

The deal with Google, which was finalized on July 11, 2025, saw Alphabet Inc. (NASDAQ: GOOG) gain access to select technologies and hire top leadership from Windsurf, including CEO Varun Mohan and co-founder Douglas Chen. The agreement is non-exclusive, allowing Windsurf to continue licensing its technology to other parties and operate independently [2]. Most of Windsurf's 250-person team will remain with the company, now led by interim CEO Jeff Wang and president Graham Moreno [2].

The acquisition by Cognition AI follows the collapse of a proposed $3 billion acquisition of Windsurf by OpenAI earlier this year. The original deal reportedly broke down due to concerns from Microsoft, OpenAI’s largest financial backer, over intellectual property rights and competitive positioning [1]. This incident highlights the increasing complexity in the AI talent war, where companies are vying for entire teams and intellectual property rights, rather than just individual researchers [2].

The acquisition by Cognition AI is expected to significantly enhance its capabilities in AI-driven coding and enterprise software solutions. The deal covers Windsurf's $82 million in annual recurring revenue and a customer base of more than 350 enterprises, further strengthening Cognition AI's position in the rapidly evolving market [3].

The financial terms of the deal between Cognition AI and Windsurf were not disclosed, but the acquisition reflects a broader trend among technology giants making high-value acquisitions to secure leading industry talent amid intensifying competition in the AI sector [3].

References:
[1] https://techcrunch.com/2025/07/11/windsurfs-ceo-goes-to-google-openais-acquisition-falls-apart/
[2] https://winbuzzer.com/2025/07/12/googles-2-4b-windsurf-deal-followed-openai-collapse-over-microsoft-ip-veto-xcxwbn/
[3] https://www.thehindu.com/sci-tech/technology/cognition-ai-to-buy-windsurf-doubling-down-on-ai-driven-coding/article69813348.ece