OpenAI in talks to buy Windsurf for about $3 billion

OpenAI is in talks to acquire Windsurf, an artificial intelligence-assisted coding tool formerly known as Codeium, for about $3 billion, according to a person familiar with the matter.The deal would be OpenAI’s largest acquisition to date, and could help the company take on rising competition in the market for AI-driven coding assistants — systems capable of tasks like writing code based on natural language prompting.
The terms of the deal haven’t been finalised, and talks could still change or fall apart, said the person, who asked not to be identified because the matter is private. OpenAI and Windsurf declined to comment.
Also Read: OpenAI unveils new AI models that can ‘think with images’Windsurf, formally called Exafunction Inc., had recently been in talks with investors including Kleiner Perkins and General Catalyst, to raise funding at a $3 billion valuation. The company was valued at $1.25 billion in a deal led by General Catalyst last year.

Founded in 2021, Windsurf has raised more than $200 million in venture capital funding, according to PitchBook data. Other investors include Greenoaks Capital Partners and AIX Ventures.

If the deal closes, OpenAI would compete more directly with companies like Anthropic, Microsoft Corp.-owned Github and Anysphere, which offer services in the fast-growing field of AI coding. The deal would also be a signal that, as more companies pile into the sector, the number of mergers and acquisitions will rise.

OpenAI has acquired other startups before, including vector database company Rockset and Multi, a remote collaboration platform.

Also Read: OpenAI to roll out new AI tools starting today, confirms CEO Sam Altman

Investors have recently been enthusiastically backing AI coding tools, including Anysphere, the startup behind Cursor, which was in talks with investors to raise money at a valuation of almost $10 billion earlier this year.

OpenAI last month closed a $40 billion financing led by SoftBank Group Corp., which values the developer of ChatGPT at $300 billion.