Windsurf AI is an advanced version of VS Code that incorporates AI models directly into the IDE. Its core AI agent, Cascade, offers advanced capabilities such as reading and writing code, executing terminal commands, and automating development tasks. Following a series of high-stakes acquisitions, Windsurf remains a strong player in the market with a steady $82 million annual recurring revenue and a growing enterprise customer base of over 350 companies. The involvement of Cognition has led to the restoration of access to Claude AI models, enhancing Cascade's functionality.
Windsurf AI is a powerful fork of VS Code that integrates AI models into the IDE, offering features like project context understanding, automated refactoring, and debugging.
The acquisition narrative surrounding Windsurf includes a failed $3 billion deal with OpenAI and a subsequent $2.4 billion reverse-acquihire by Google, leading to its purchase by Cognition.
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