Windsurf CEO Varun Mohan Hired by Google as Startup Continues Innovation Under New Ownership
Earlier this year, OpenAI was reportedly close to acquiring Windsurf, a promising AI startup focused on coding tools, with a $3 billion offer on the table. However, the exclusivity period for the deal expired without a finalized agreement. Reports from The Verge and The Wall Street Journal suggest tensions arose due to overlapping technology access with Microsoft, complicating the acquisition. As a result, OpenAI’s bid quietly collapsed, leaving Windsurf to explore other options.
ALSO READ: Walmart-Owned Flipkart’s $50 Million Buyback Set to Benefit 7,500 Employees
Google Secures Windsurf CEO and Key Talent in Strategic Hiring
Following the failed OpenAI acquisition, Google DeepMind quickly moved to acquire Windsurf’s top leadership through a ‘reverse acquihire.’ Google hired Windsurf’s Indian-origin CEO Varun Mohan, co-founder Douglas Chen, and several senior AI researchers. Instead of acquiring the company outright, Google is paying $2.4 billion in licensing fees for access to some of Windsurf’s technology under non-exclusive terms. This strategy allows Google to gain critical talent and tech while leaving Windsurf operationally independent.
Windsurf Leadership Changes Amid High-Profile Departures
With Varun Mohan and Douglas Chen joining Google, Windsurf appointed Jeff Wang, the head of business, as interim CEO, and promoted Graham Moreno, VP of global sales, to president. Despite the departure of its founders and key personnel, about 250 employees remain at Windsurf. Wang reassured customers that the company continues its focus on enterprise AI coding tools and innovation, emphasizing stability and ongoing growth.
Cognition Labs Acquires Windsurf to Expand AI Developer Tools
Shortly after Google’s talent acquisition, AI startup Cognition Labs announced it acquired Windsurf. Known for developing Devin, an autonomous AI software engineer, Cognition gains access to Windsurf’s remaining team and infrastructure. This acquisition will help Cognition scale its AI developer tools, even as Windsurf’s original founders and leadership join Google. Financial details of the deal have not been disclosed.
The Growing Race Among Big Tech to Acquire AI Talent and Technology
The Windsurf saga highlights the intense competition among Big Tech companies to secure AI talent and cutting-edge technology. Rather than pursuing full acquisitions, firms like Google, Microsoft, and Meta increasingly favor talent-focused hires and licensing agreements to avoid regulatory scrutiny. This ‘acquihire’ trend reflects a strategic shift where top AI professionals and intellectual property are the most valuable assets in the rapidly evolving AI landscape.
For ongoing coverage and the latest developments, stay with Newz24India.