OpenAI reaches agreement to buy startup Windsurf for US$3 billion
Investors have also poured money into a new crop of startups offering similar tools, including Anysphere, the startup behind Cursor
[LOS ANGELES] OpenAI has agreed to buy Windsurf, an artificial intelligence (AI) assisted coding tool formerly known as Codeium, for about US$3 billion, according to sources familiar with the matter, marking the ChatGPT maker’s largest acquisition to date.
The deal has not yet closed, said the sources, who spoke on condition of anonymity to discuss private matters. OpenAI and Windsurf declined to comment.
The acquisition could help OpenAI take on rising competition in the market for AI-driven coding assistants – systems capable of tasks such as writing code based on natural language prompting. Bloomberg News previously reported that the two companies were in discussions about an acquisition.
Windsurf, formally called Exafunction, had recently been in talks with investors including Kleiner Perkins and General Catalyst to raise funding at a US$3 billion valuation. The company was valued at US$1.25 billion in a deal led by General Catalyst last year.
OpenAI rival Anthropic and Microsoft-owned Github both offer AI tools for programmers. Investors have also poured money into a new crop of startups offering similar tools, including Anysphere, the startup behind Cursor.
OpenAI recently finalised a US$40 billion financing led by SoftBank Group, which values the company at US$300 billion.
On Monday, OpenAI said it was walking back plans to restructure as a more conventional for-profit business after facing public pushback. BLOOMBERG
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