OpenAI buys Windsurf for $3 billion
OpenAI has agreed to acquire Windsurf, an AI-assisted coding tool formerly known as Codeium, for approximately $3 billion, according to people familiar with the matter. The deal, which has not yet closed, marks OpenAI’s largest acquisition to date.
Windsurf, formally called Exafunction Inc., has been developing AI-driven coding assistants capable of tasks such as writing code based on natural language prompting. The company had recently been in talks with investors, including Kleiner Perkins and General Catalyst, to raise funding at a $3 billion valuation, up from its $1.25 billion valuation in a deal led by General Catalyst last year.
The acquisition is seen as a strategic move by OpenAI to bolster its position in the competitive market for AI-driven coding assistants. OpenAI rivals, such as Anthropic and Microsoft Corp.-owned Github, already offer AI tools for programmers. Additionally, investors have been pouring money into startups offering similar tools, including Anysphere, the startup behind Cursor.
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OpenAI has been on a significant growth trajectory, recently finalizing a $40 billion financing led by SoftBank Group Corp., which values the company at $300 billion. The ChatGPT maker has also been navigating its corporate structure, announcing on Monday that it was walking back plans to restructure as a more conventional for-profit business after facing public pushback.