Cognition AI to buy Windsurf, doubling down on AI-driven coding
The deal follows Google's $2.4 billion deal with Windsurf last week aimed at acquiring top talent and securing licensing rights to its technology.
The deal with Google marks a win for Windsurf's backers, who have raised $243 million from investors including Kleiner Perkins, Greenoaks, and General Catalyst, and was last valued at $1.25 billion one year ago, according to PitchBook.
The move reflects a broader trend among technology giants such as Alphabet (GOOGL.O), opens new tab and Meta, which are making bold, high-value acquisitions and offering lucrative compensation packages to secure leading industry talent amid intensifying competition in the AI sector.
The deal with Cognition covers Windsurf's intellectual property, product line, brand, and business operations, as well as its highly regarded engineering, product, and go-to-market teams.
While the financial terms of the deal were not disclosed, Windsurf brings with it $82 million in annual recurring revenue and a customer base of more than 350 enterprises.
"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," Jeff Wang, Windsurf's interim chief executive officer, said in an email to employees.
In the immediate term, Windsurf will continue to operate independently, with Cognition pledging significant investment to integrate Windsurf's technology and unique assets into its own product suite, including its flagship autonomous agent, Devin.
Earlier, Windsurf had been engaged in months-long discussions with OpenAI regarding a potential acquisition that could have valued the company at $3 billion, sources familiar with the matter told Reuters in June.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Reuters
16 minutes ago
- Reuters
Dollar on shaky ground as markets fret about Fed independence
TOKYO, July 17 (Reuters) - The dollar was on a fragile footing on Thursday having lost ground overnight as concerns U.S. President Donald Trump was preparing to fire the Federal Reserve chair shook confidence in U.S. markets. Trump denied reports he was planning to dismiss Fed Chair Jerome Powell, but he kept the door open to the possibility and renewed his criticism of the central bank chief for not lowering interest rates. Investors worry that removing Powell before his term ends in May 2026 would undermine credibility in the U.S. financial system and the dollar as a safe-haven currency. And a more dovish Fed could lead to a return of inflation and negative real yields on Treasuries, said Mahjabeen Zaman, head of foreign exchange research at ANZ. "If that comes to fruition, you're going to see a much weaker dollar than we're already expecting," Zaman said in an ANZ podcast. "Such an event, if that even does happen, it will raise questions for Fed independence and credibility, so I think it's only going to be an increase in volatility." Trump has railed against Powell for months for not easing rates, which he says should be at 1% or lower. Bloomberg reported that the president is likely to fire Powell soon, and a source told Reuters that Trump polled some Republican lawmakers on firing Powell and received a positive response. Trump said that the reports were not true. "I don't rule out anything, but I think it's highly unlikely unless he has to leave for fraud," Trump said, a reference to recent White House and Republican lawmaker criticism of cost overruns in the $2.5 billion renovation of the Fed's historic headquarters in Washington. The dollar index , which measures the greenback against major peers, was little changed at 98.384 after a 0.3% slide on Wednesday. The U.S. currency ticked up 0.2% to 148.14 yen , after a 0.6% decline overnight. The euro stood at $1.1632 , down 0.01%. Sterling edged 0.1% lower to $1.3409 . Investors remain focused on tariffs ahead of an August 1 deadline when many trading partners face higher trade levies. Trump said on Wednesday the U.S. will probably "live by the letter" on tariffs with Japan and may have another trade deal coming up with India, following his announcement of an accord with Indonesia on Tuesday. In Japan, investors are focused on a potential power shift in upper house elections this weekend that could strain already frail finances, with long-dated yields soaring to all-time highs as the vote nears.
Reuters
an hour ago
- Reuters
Fed's Williams won't comment on Trump attacks on central bank
NEW YORK, July 16 (Reuters) - Federal Reserve Bank of New York President John Williams declined on Wednesday to comment on President Donald Trump's attacks on the central bank and what it might mean if the president were to somehow remove the Fed's leader from office. 'I can't comment' on what the president has said and how markets reacted, Williams told reporters. He was commenting on reports from earlier in the day that suggested Trump was close to firing Fed Chairman Jerome Powell, even as the president later said that was not something he was planning to do. Williams reiterated that an independent central bank delivers better results and noted that in his experience Fed officials and staff maintain a 'laser like' focus on the central bank's mission. Williams also told reporters that amid a drop in the dollar's value, its status as the preeminent reserve currency remains unchanged. 'There are a lot of fundamental factors that support the role of the dollar … in global trade and in global financial markets, and that I see is unchanged now.'
Reuters
an hour ago
- Reuters
Oil rises as demand hopes and economic data lift sentiment
July 17 (Reuters) - Oil prices rose in early trade on Thursday, reversing the previous session's losses, buoyed by stronger-than-expected economic data from the world's top oil consumers and signs of easing trade tensions. Brent crude futures rose 27 cents, or 0.39%, to $68.79 a barrel at 0000 GMT. U.S. West Texas Intermediate crude futures were up 31 cents, or 0.47%, at $66.69. Both benchmarks fell more than 0.2% in the previous session. U.S. crude inventories fell by 3.9 million barrels to 422.2 million barrels last week, the Energy Information Administration said on Wednesday, a steeper decline than forecasts for a 552,000-barrel draw, suggesting stronger refinery activity, tighter supply, and increased demand. There is "some support from the favorable margin environment associated with the refining sector. Product spreads remain relatively wide in all the regions," said John Paisie, president of Stratas Advisors. However, larger-than-expected builds in gasoline and diesel inventories capped price gains. The U.S. central bank's latest snapshot of the economy, released on Wednesday, showed activity picked up in recent weeks. However, the outlook was "neutral to slightly pessimistic" as businesses reported that higher import tariffs were putting upward pressure on prices. China data showed growth slowed in the second quarter, but not by as much as previously feared, in part because of front-loading to beat U.S. tariffs, easing fears over the state of the world's largest crude importer's economy. The data also showed that China's June crude oil throughput was up 8.5% from a year ago, implying stronger fuel demand. Additionally, "support has come from the positive news pertaining to some easing of trade tensions between China and the U.S. with President Trump lifting the ban on the sale of AI chips to China along with the announcement of a trade deal with Indonesia," John Paisie added. U.S. President Donald Trump offered fresh optimism about the prospects of a deal with Beijing on illicit drugs. He also hinted that a trade deal with India is very close, while an agreement could possibly be reached with Europe as well. Trade tariffs could slow down global economic growth, and in turn dampen fuel demand, putting downward pressure on prices.
