On July 14, 2025, Reuters reported that Cognition AI agreed to acquire Windsurf—previously backed by Google’s $2.4 billion deal—to enhance its positioning in enterprise AI tools. The deal includes Windsurf’s IP, product line, brand, and 350+ enterprise customer relationships; although terms weren’t disclosed, Windsurf generated some $82 million in annual recurring revenue.
Windsurf, previously valued at $1.25 billion, had also been courting OpenAI for a potential $3 billion acquisition, making Cognition’s move especially significant. For now, Windsurf will operate semi-independently as Cognition integrates its IDE technology into its flagship autonomous agent, Devin.
Key Highlights
Acquisition: Cognition AI to buy IDE startup Windsurf
ARR: Windsurf brings ~$82 M in recurring revenue
Valuation: Previously valued at ~$1.25 bn, eyed by OpenAI
Strategic goal: Enhance Cognition’s enterprise AI agent
Independence retained: Windsurf to continue operating semi-autonomously
Why This Matters
AI coding wars escalate: This reinforces the race among AI players (Cognition, Google, OpenAI, Anthropic) to dominate developer tools.
IDE powered by AI: Windsurf’s integration means deeper, more productive AI-assisted coding workflows.
Market consolidation: High-value acquisitions reflect surging demand and talent scramble in AI enterprise space.
Developer impact: Teams on enterprise stacks stand to gain from more intelligent automation, shortening development cycles and reducing errors.
Source:
Reuters– Full Article
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