OpenAI in Talk to Acquire AI Powered Coding Startup Windsurf: Report
| BREVITY: OpenAI is reportedly in advanced negotiations to acquire Windsurf, an AI-powered coding assistant for approximately $3 billion. If finalized this would represent OpenAI’s largest acquisition to date. |
OpenAI is in discussion to acquire Windsurf (formerly known as Codeium) for about $3 billion, citing a person familiar with the context, reported by Bloomberg. Windsurf is an AI-powered coding tool, which offers developers an AI-assisted coding experience similar to tools like GitHub and Copilot.
If the deal takes place, this would mark OpenAI’s largest acquisition to date. Previously the company acquired by OpenAI include vector database company Rockset and Multi. However, the terms of the deal have not been yet finalized and could still change or fall apart, Bloomberg reported.
This move could help OpenAI compete with other companies (Anthropic and Microsoft owned Github) in the growing market for AI tools that write code from natural language prompts. Cursor, which is an AI-powered IDE developed by Anysphere Inc. where developers can generate codes, rewrite it and do much more, has the direct competition with Windsurf. So the move of acquisition could place OpenAI as the front runner in the AI race.
About Windsurf
Windsurf, founded in 2021, formally known as Exafunction Inc. which offers developers and AI-assisted coding experience: integrated features such as code autocompletion and intelligent suggestions to enhance productivity. Windsurf was recently in talk to raise funding at $3 billion valuation from investors like Kleiner Perkins and general catalyst. Last year the company secured funding of $150 million from general catalyst at the valuation of $1.25 billion. According to PitchBook data, Windsurf has secured more than $200 million from venture capitals.
As of now, OpenAI and Windsurf have declined to comment on the ongoing discussions. The deal is not yet finalized and maybe subject to change.
