“AI Giants Clash: OpenAI in Talks to Acquire Windsurf for $3 Billion”
OpenAI, a leading AI company, is rumored to be in discussions to acquire Windsurf, a popular AI coding assistant, for a staggering $3 billion. The deal, if finalized, could shake up the AI coding assistant market and put OpenAI in direct competition with other key players like Anysphere, the creator of Cursor.
Speculation around the acquisition has raised questions about OpenAI’s investment in Cursor, as one of its major investors. While it remains uncertain if OpenAI approached Cursor about a potential acquisition, signs of a strategic move between the companies have emerged. Windsurf users recently received an email hinting at a major announcement, offering them the opportunity to secure access to the coding editor at a discounted rate.
To add fuel to the fire, OpenAI’s Chief Product Officer, Kevin Weil, released a video praising Windsurf’s capabilities. These developments indicate a significant shift in the AI coding sector.
Windsurf, previously known as Codeium, has been eying fresh funds at a valuation of $2.85 billion. Despite boasting an impressive annual revenue of $40 million, it falls short compared to Cursor’s reported $200 million revenue. Cursor, on the other hand, is in talks to raise capital at a whopping $10 billion valuation.
Founded in 2021 by Varun Mohan and Douglas Chen, both MIT grads and childhood friends, Windsurf has garnered $243 million from investors such as Greenoaks Capital and General Catalyst.
As OpenAI and Windsurf navigate these pivotal discussions, the tech world awaits with bated breath for any further developments in this high-stakes acquisition saga.
