In a candid interview with TechCrunch, the outgoing CEO of Windsurf, Varun Mohan, opened up about the tumultuous period leading up to the AI startup's acquisition by Cognition, the maker of AI coding agent Devin. Mohan described the atmosphere at Windsurf as 'very bleak' after a high-profile deal with OpenAI fell through, leaving the company and its employees in a state of uncertainty.
The collapse of the $3 billion acquisition by OpenAI was a significant blow to Windsurf, a promising player in the AI coding tools space. Shortly after, Google DeepMind swooped in, hiring Mohan and several key team members in a $2.4 billion licensing deal, further destabilizing the company. This left the remaining workforce grappling with fears over equity value and job security.
Mohan expressed regret over the impact on his team, noting that many employees had joined Windsurf with the hope of a substantial payout through equity. 'The mood was incredibly low as we watched potential futures slip away,' he admitted. However, the acquisition by Cognition offered a lifeline, ensuring full equity vesting for the remaining staff and preserving the company’s intellectual property.
The deal with Cognition, finalized just days after Google’s move, has been seen as a strategic play to bolster Cognition’s position against competitors like Anthropic and Cursor. By acquiring Windsurf’s technology and user base, Cognition aims to enhance its offerings in the rapidly evolving AI development landscape.
Despite the positive outcome, Mohan’s reflections highlight the intense pressure and power imbalances in the AI industry, where smaller startups often struggle against the dominance of tech giants. His departure to Google DeepMind, while controversial among some employees, underscores the ongoing talent wars in Silicon Valley.
As Windsurf transitions under Cognition’s umbrella, the industry watches closely to see how this acquisition will shape the future of AI coding tools. For now, Mohan’s revelations serve as a reminder of the high stakes and emotional toll behind the scenes of tech mergers and acquisitions.
Andrew Lee
