Google's $2.4B Windsurf deal was all about the talent
Windsurf, an AI code-generation startup, raised $243 million by 2024 and hit a $1.25 billion valuation before Google stepped in.
In 2025, Google paid $2.4 billion for a nonexclusive license to Windsurf's tech and brought over key talent—but didn't buy the whole company.
Investors cash in big time
After the deal, Windsurf's CEO Varun Mohan, co-founder Douglas Chen, and top researchers joined Google DeepMind in a "reverse acquihire" move aimed at securing talent without taking over the company itself.
Investors like Greenoaks made out big—turning $65 million into $500 million—while Kleiner Perkins tripled its money.
Employees left out initially, but later got a win
Most of Windsurf's 250 employees didn't see extra payouts or faster vesting from the Google deal, sparking some frustration internally.
Later on, Cognition bought up Windsurf's remaining assets for about $250 million—finally giving all remaining employees a financial win.