Why One AI Acquisition Stands Apart from the Talent First Trend

Cognition AI’s takeover of Windsurf in July 2025 was introduced as a major consolidation in the AI coding market. The San Francisco–based company, known for its autonomous coding agent Devin, announced that it was acquiring Windsurf’s IP, product, brand, and “world-class people.” In the same breath, it promised accelerated equity vesting and equal treatment for all incoming employees. The deal brought together two companies targeting different corners of the developer tools market. Windsurf, an IDE-focused AI coding startup, had grown to $82 million in annual recurring revenue and more than 350 enterprise customers. But it had already undergone major changes earlier in the year. OpenAI’s proposed $3 billion acquisition of Windsurf had collapsed, and in July, Google stepped i