OpenAI expands developer tools with Windsurf purchase
Instead of raising more capital, Windsurf is in talks to be acquired by OpenAI, signalling a major strategic shift in AI-powered coding tools.
OpenAI, the creator of ChatGPT, is reportedly set to acquire Windsurf, an AI-powered coding assistant formerly known as Codeium, for $3 billion, according to Bloomberg. If confirmed, it would be OpenAI’s largest acquisition to date.
The deal is still pending closure, but it follows recent investment talks Windsurf held with major backers such as General Catalyst and Kleiner Perkins, valuing the startup at the same amount.
Windsurf was last valued at $1.25 billion in 2024 after a $150 million funding round. Instead of raising more capital independently, the company now appears poised to join OpenAI, which is looking to bolster its suite of developer tools within ChatGPT.
The acquisition reflects OpenAI’s efforts to remain competitive in the fast-evolving AI coding landscape, following earlier purchases like Rockset and Multi last year.
OpenAI also revealed it would scale back a planned restructuring, abandoning its proposal to become a for-profit entity.
The decision comes amid growing scrutiny and legal challenges, including a high-profile lawsuit from Elon Musk, who accused the firm of drifting from its founding mission to develop AI that serves humanity.
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