OpenAI agrees to buy startup Windsurf for $3 Billion; Would be OpenAI’s largest acquisition to date

According to a recent report by Bloomberg, ChatGPT’s maker, OpenAI, has reached an agreement to buy Windsurf, an artificial intelligence-assisted coding tool formerly known as Codeium, for about $3 billion. It is revealed that, according to people familiar with the matter, the deal has not yet closed between the two.

If this deal is finalized, it would be OpenAI’s largest acquisition to date and could help OpenAI take on rising competition in the market for AI-driven coding assistant systems capable of tasks like writing code based on natural language prompting.

The report also reveals that Windsurf, formerly called Exafunction Inc., had recently been in talks with investors, including Kleiner Perkins and General Catalyst, to raise funding at a $3 billion valuation. The company was valued at $1.25 billion in a deal led by General Catalyst last year.

Windsurf competes with Cursor, another popular AI coding tool, as well as existing AI coding features from companies such as Microsoft and Anthropic. OpenAI has made several deals in the past. Recently, the company has finalized a $40 billion financing led by SoftBank Group Corp., which values the company at $300 billion.

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