Windsurf CEO Faces Backlash After Jumping Ship to Google Amid Failed $3 Billion OpenAI Deal
July 21, 2025
Social media reactions labeled Mohan a 'generational villain' and criticized founders for cashing out while leaving their teams behind, raising concerns about loyalty and reputation.
Despite the controversy, Mohan is recognized for his contributions to AI tools and continues to influence the industry at Google DeepMind.
Cognition's new CEO, Jeff Wang, described the acquisition as 'crazy' and highlighted the unexpected nature of the deal, which was finalized over a single weekend with lawyers working tirelessly.
Cognition's acquisition includes Windsurf's intellectual property, such as the Windsurf Editor, which will enhance Cognition's platform for developers, marking a strategic move in the competitive AI landscape.
The rapid developments in this case underscore the fierce competition in the AI sector and the critical importance of successful technology integration for future growth.
Ownership of Windsurf's technology allows Cognition to avoid potential regulatory scrutiny that could have arisen from Google's more complex acquisition attempt, which relied on a non-exclusive license.
Varun Mohan, CEO of Windsurf, faced significant backlash after leaving the company to join Google's DeepMind following a failed $3 billion acquisition deal with OpenAI, which has sparked widespread criticism and social media outrage.
The deal was negotiated over a single weekend, with continuous efforts from legal teams, culminating in a Monday morning finalization that brought relief and excitement among Windsurf employees.
The deal grants Cognition access to Windsurf's enterprise customer base, including major clients like Dell and Zillow, along with a large active user base, positioning Cognition strongly in the AI coding tools market.
Within 24 hours, a letter of intent was signed prioritizing Windsurf employees' payouts and equity vesting, reflecting a focus on team stability amid the upheaval.
Cognition's CEO Scott Wu expressed disappointment in founders abandoning their teams, emphasizing a shift in expectations for founder loyalty and responsibility during challenging times.
Varun Mohan, of Indian origin, grew up in California, attended MIT, and co-founded Windsurf in 2021, which initially focused on GPU virtualization before developing the popular AI-powered IDE, Cascade.
Summary based on 9 sources
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Sources

Business Insider • Jul 20, 2025
Vinod Khosla says Windsurf's founders abandoned their team: 'I definitely would not work with their founders next time'
The Times Of India • Jul 21, 2025
Who is Varun Mohan? Indian-origin CEO of Windsurf faces backlash after quitting startup for Google, derailing $3B OpenAI deal