has agreed with Windsurfto acquire the AI-powered coding assistance formerly known by Codeium for approximately $3 billion. This acquisition is OpenAI’s largest deal to date. It will enhance ChatGPT coding capabilities as OpenAI continues improving its models in the AI-driven development sector.
Windsurf was founded in 2021 by MIT graduates Varun Mohan, Douglas Chen and offers a IDE-agnostic AI coding assistance that integrates with multiple development environments including VS Code JetBrains Jupyter and Neovim. The platform emphasizes enterprise data privacy, deployment flexibility and extensibility. This makes it appealing to organizations looking for reliable alternatives to cloud assistants.
This acquisition is seen as an important strategic move that will strengthen OpenAI’s position in AI-assisted software generation, a field currently led by GitHub Copilot. OpenAI’s interest is likely due to both its technical maturity as well as its strategic fit. Windsurf generates about $40 million annually in recurring revenue, and was valued at $1.25billion after a funding led by General Catalyst. This move reflects the growing trend of AI consolidation, as major AI developers look to secure strategic applications built on their foundational AI models. The acquisition, if completed, could attract scrutiny from antitrust authorities, given OpenAI’s rapidly growing influence in the field.
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