For years, code-editing tools like Cursor, Windsurf, and GitHub’s Copilot have been the standard for AI-powered software development. But as agentic AI grows more powerful and vibe-coding takes off, a subtle shift has changed how AI systems are interacting with software.

In an unexpected turn of events, artificial intelligence startup Cognition announced this week that it is acquiring AI coding startup Windsurf, just days after news that OpenAI’s planned $3 billion buy of Windsurf had fallen apart.

Hot on the heels of a leadership shakeup at Windsurf last week, Cognition announced today it has signed an agreement to acquire Windsurf. The whiplash here explains at least some of last week's turmoil surrounding Google's hiring of top talent at Windsurf.

Bay Area tech companies are battling to build popular, useful artificial intelligence — and the fight just ripped apart a startup. Windsurf, an AI company based in Mountain View, began last week as a reported $3 billion acquisition target for OpenAI.

Cognition said the deal structure eliminates existing vesting cliffs and provides accelerated vesting for current staff members, recognizing their contributions to building Windsurf's business foundation.