News Summary

Days after Windsurf, an AI coding startup, was acquired by Cognition, the company’s CEO Jeff Wang shared insights into the dramatic events leading up to the deal. Initially, Windsurf was in acquisition talks with OpenAI, but those discussions fell through when Google DeepMind hired key members of Windsurf’s team, including CEO Varun Mohan and co-founder Douglas Chen. This move was seen as a ‘reverse acquihire,’ allowing Google to license Windsurf’s technology without taking an equity stake. The news left Windsurf’s staff in a state of uncertainty and concern. Wang, who became the interim CEO after Mohan’s departure, recounted a tense all-hands meeting where employees expected news about the OpenAI deal, only to learn about the Google departure. Despite the bleak atmosphere, Wang emphasized the company’s retention of its intellectual property and talent, which allowed it to explore other opportunities. Windsurf eventually engaged in negotiations with Cognition, leading to an acquisition designed to benefit all employees, with provisions such as payout and accelerated equity vesting. The acquisition was finalized and announced promptly, marking a significant turnaround from the previous week’s challenges.