India, July 21 -- The market for AI coding tools has completely changed in a matter of days when Windsurf announced that it had been bought by Cognition. Windsurf, which was once in an 3 billion dollars acquisition deal with OpenAI, just had its deal fall apart only to have Google DeepMind step in shortly-after with a 2.4 billion dollars licensing/ talent deal to hire its CEO Varun Mohan, co-founder Douglas Chen, and a handful of its most impressive AI engineers in the process.

It was after months of negotiation between OpenAI and Windsurf that one of the biggest AI coding tool acquisitions would take place. It is reported that a final letter of intent was signed, in fact even investor payout agreements were prepared. However, the tensio...