OpenAI will acquire Windsurf, an artificial intelligence-powered coding assistance, in a reported $3 billion deal.
The deal is not finalized at the time of writing. However, if it does go through, it will be OpenAI’s biggest acquisition to date. It will also signal an aggressive push for OpenAI to dominate the rapidly changing field of AI-assisted Software Development.
Windsurf is a product from Exafunction Inc. formerly known as Codeium. This startup has attracted significant attention in the past year as one of the emerging tools that convert plain language prompts to working code. This reduces the need for manual programming and, in some instances, automates tasks that are typically handled by junior developers. This acquisition would place OpenAI in direct competition with Microsoft GitHub Copilot, and Anthropic’s AI Developer Tools. These are two of the most popular coding platforms available.
Windsurf, which was valued at $1.25billion, had been in discussions with investors about raising new funding for $3billion before OpenAI made an acquisition offer.
This deal follows OpenAI’s recent $40 billion investment led by SoftBank which pushed its valuation to $300 billion. OpenAI can now expand its coding capabilities and integrate Windsurf into its ecosystem with such financial backing.
Although there has not been an official public statement from OpenAI or Windsurf yet, sources indicate that the acquisition could give OpenAI a competitive edge in developing AI assistants which better understand and execute complicated programming tasks.
It is likely that the company is aiming to create a platform that can not only generate functional code, but also adapts according to individual developers and project needs.
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Efosa is a technology writer who has been writing for more than 7 years. Initially driven by curiosity, he now writes with a passion for the subject. He has a PhD and a Master’s degree in sciences. This gave him a solid foundation for analytical thinking. Efosa has a keen interest for technology policy. He is particularly interested in the intersection between privacy, security and politics. His research focuses on how technological advancements affect regulatory frameworks and social norms, especially in regards to data protection and cybersecurity. In addition to privacy and technology policies, he will also be focusing on B2B products when he joins TechRadar Pro. Efosa can be contacted at this email: udinmwenefosa@gmail.com
