OpenAI deal for Windsurf falls apart
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Cognition is acquiring Windsurf days after Google DeepMind hired its CEO and research leaders, and months after OpenAI offered to buy it.
OpenAI’s $3B bid to acquire Windsurf collapsed after talks stalled, clearing the path for Google to license its AI coding tools and hire key team members.
The move is the culmination of a turbulent period for Windsurf, and indicates that agentic IDEs have become a new battleground.
Questions swirled about Windsurf's future after Google's surprise deal. Now, Windsurf will have a new owner.
In an unexpected turn of events, artificial intelligence startup Cognition announced this week that it is acquiring AI coding startup Windsurf, just days after news that OpenAI’s planned $3 billion buy of Windsurf had fallen apart.
From interning at five tech firms during college to building a billion-dollar AI startup, 28-year-old Varun Mohan’s journey triggered a ₹20,400 crore deal with Google after he rejected OpenAI’s ₹25,500 crore offer.
OpenAI is the world's leading AI startup. For how long will depend on how well it fends off multi-front attacks from competitors like Meta and Google.
In a surprising move, Cognition– the makers of autonomous coding tool Devin— acquired what was left of its rival Windsurf after the company’s cofounders Varun Mohan and Douglas Chen and other staff members were poached by Google DeepMind for $2.