“There's an unspoken covenant that as a founder, you go down with the ship. For better or worse, it's changed a bit over the last year and I think it's disappointing, to be honest.” Enough said. This show is everything and more on: - What really happened behind the scenes - Did Google leave behind a treasure of an asset - How was the deal structured - How Cursor and Cognition deal with ever increasing reliance on Anthropic My 4 takeaways with @ScottWu46 👇

~10 yrs ago it felt like Silicon Valley had this really vibrant seed fund ecosystem, that felt just as important as the multi-stage venture firms Now, that feels totally dead Partially because a whole generation of top-tier companies just completely skipped that step in raising

It’s a privilege to welcome Windsurf to Cognition. Here are more details in the note I sent to our Cognition team this morning: Team, As discussed during our all-hands, we are acquiring Windsurf. We have now signed a definitive agreement and we couldn’t be more excited. Here’s a recap and, again, this information is highly confidential until 11am PT, after Windsurf’s all-hands. The Windsurf team deserves to hear this from Jeff and me in the right way, so please keep everything quiet in the interim out of respect for our new colleagues. So, what exactly is the deal? With this acquisition, Cognition will own Windsurf’s beloved product and strong business: -The Windsurf IDE, now with full access to the latest Claude models -Windsurf's IP, including their trademark and the strong brand they have built -$82M of ARR and a fast-growing business, with enterprise ARR doubling quarter-over-quarter -A user base that includes 350+ enterprise customers and hundreds of thousands of daily active users Above all, we are welcoming some of the most impressive people in our industry, including world-class GTM, engineering, and product teams. We’ve long admired the Windsurf team and what they’ve built. One of my top priorities in structuring this deal was to honor their talent, hard work, and accomplishments in making Windsurf the great business it is today. To that end, Jeff and I worked together to ensure that every single employee is treated with respect and well taken care of in this transaction. Specifically: 100% of Windsurf employees will participate financially in this deal 100% of Windsurf employees will have vesting cliffs waived for their work to date 100% of Windsurf employees will receive fully accelerated vesting for their work to date Every new employee of Cognition will be treated the same way as existing employees: with transparency, fairness, and deep respect for their abilities and value. After today, our efforts will be as a united and aligned team. There’s only one boat and we’re all in it together. What this means for Cognition is that we’ll be able to move even faster on our mission of building the future of software engineering. As you all know, we’ve had strong momentum and adoption over the last few months. For many enterprise engineering teams, Devin is already a top contributor. As our customer base continues to grow, it’s clear that combining the rapid adoption of Devin as the leading fully autonomous agent with Windsurf’s IDE product and scaled GTM machine will be a massive unlock. There’s never been a more exciting time to build. Within our lifetime, engineers will go from bricklayers to architects, focusing on the creativity of designing systems rather than the manual labor of putting them together. It’s a privilege to be in this position, and it’s your hard work that has brought us here. There’s much more to do ahead, and the work won’t be easy, but today is a huge win for all of us in the positive-sum game we’re playing. Thank you for being on this journey together. Now let’s get ready to give our new colleagues a warm welcome. Scott