AI Giant OpenAI to Acquire Windsurf for Approximately $3 Billion, According to Bloomberg
ChatGPT's Developers, OpenAI, announced a whopping $3 billion deal to buy Windsurf, an AI-powered coding tool company. According to Bloomberg News, this is OpenAI's largest acquisition to date, a strategic move to bolster its presence in the AI coding market.
The acquisition value is a considerable premium compared to Windsurf's previous valuation of $2.85 billion from its February 2025 fundraising round. Last year, the company was valued at $1.25 billion following a $150 million funding round led by General Catalyst.
Windsurf, formerly known as Codeium, was also in discussions with investors like General Catalyst and Kleiner Perkins to raise funds valued at $3 billion.
If the deal goes through, it's expected to boost OpenAI's coding capabilities, complementing their popular AI chatbot, ChatGPT. The company has been continuously enhancing its coding features with each new model release. However, competition in this area is intensifying.
OpenAI has made numerous acquisitions in recent years to boost various aspects of its AI product line. For instance, it bought Rockset, a search and database analytics startup, in a big-ticket stock deal last year.
OpenAI's weekly active user count surged past 400 million in February, marking a sharp increase from the 300 million weekly active users in December. The company is also planning a new funding round, hoping to raise up to $40 billion, led by SoftBank Group at a staggering $300 billion valuation.
This acquisition, if successful, will not only fortify OpenAI's position in the AI coding market but also integrate Windsurf's AI-assisted tools to create a comprehensive, seamless ecosystem for code generation, refinement, and deployment. This integration aims to accelerate the adoption of OpenAI's models and gather granular data for further model refinements.
Windsurf's "Cascade Flow" system, a proprietary technology that analyzes entire codebases to optimize workflows and reduce errors, has been recognized by inclusion in the Forbes AI 50 for 2025. The acquisition underscores OpenAI's efforts to compete with other AI-driven coding assistants like Microsoft's GitHub Copilot and Anysphere's Cursor.
Though the agreement has been reached, the deal is yet to be finalized. Both OpenAI and Windsurf have remained tight-lipped about the acquisition details.
- OpenAI, having recently agreed to a $3 billion deal, is set to acquire Windsurf, an AI-powered coding tool company, marking its largest acquisition to date.
- The acquisition of Windsurf will not only bolster OpenAI's presence in the AI coding market but also integrate Windsurf's AI-assisted tools to create a comprehensive, seamless ecosystem for code generation, refinement, and deployment.
- Windsurf's "Cascade Flow" system, a proprietary technology recognized by Forbes AI 50, will be integrated into OpenAI's product line, aiming to accelerate the adoption of OpenAI's models and gather granular data for further model refinements.
