OpenAI to acquire AI coding startup Windsurf for $3B: Report
The deal, which has not yet closed, would mark OpenAI’s largest acquisition to date, according to a Bloomberg report.
ChatGPT-maker OpenAI is set to acquire Windsurf, an AI-powered coding assistant formerly known as Codeium for $3 billion, reports Bloomberg.
The deal, which has not yet closed, would mark OpenAI’s largest acquisition to date, the report said, citing sources familiar with the matter.
Windsurf had recently been in talks with investors including General Catalyst and Kleiner Perkins to raise fresh capital at the same $3 billion valuation. The startup was last valued at $1.25 billion last year after a $150-million funding round led by General Catalyst, with participation from Kleiner Perkins and Greenoaks.
The acquisition is expected to strengthen OpenAI’s coding offerings within ChatGPT, as the company continues to enhance its developer tools amid increasing competition in the AI coding space.
The company has previously made several smaller acquisitions, including analytics database firm Rockset and video collaboration platform Multi last year.
OpenAI on Tuesday also announced to scale back a major restructuring plan, abandoning its initial plan to become a for-profit company.
The development comes on the heels of criticism and legal pressure, including a prominent lawsuit from X Co-founder Elon Musk, who accused the firm of deviating from its original mission to build AI for the benefit of humanity.
Edited by Swetha Kannan