Source: Windsurf
OpenAI is reportedly in advanced discussions to acquire Windsurf, an artificial intelligence-powered tool for coding, at a price of about $3 billion, according to a Bloomberg report. This would give the ChatGPT maker a stronger foothold in AI-driven programming assistants, which use natural language prompts to churn out snippets of code.
OpenAI's largest acquisition: If the deal goes through, it would be OpenAI’s largest acquisition to date, CNBC says. Windsurf, formerly known as Codeium and Exafunction, has raised more than $200 million in venture capital and was valued at $1.25 billion as recently as last year, underscoring the surge of investor appetite for generative AI tools.
Growth levers: OpenAI recently secured $40 billion in new funding, giving it an estimated valuation of $300 billion and enabling more aggressive expansion into multiple AI-centric domains. Industry analysts note that the move would see OpenAI competing more directly against Anthropic, Microsoft-owned GitHub, and other emerging AI coding competitors hungry for developer adoption.
Crowded space: TechCrunch reports that the acquisition raises questions about how OpenAI will manage its portfolio going forward. The startup fund run by OpenAI has also backed other AI coding ventures, including Anysphere’s Cursor — potentially setting up internal tensions if Windsurf comes under OpenAI’s umbrella.