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OpenAI is in advanced discussions to acquire AI coding startup Windsurf for approximately $3 billion, according to Bloomberg. If completed, the deal would mark OpenAI’s largest acquisition to date.

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The company, best known as the developer of ChatGPT, is currently valued at around $300 billion. Windsurf, formerly known as Codeium, builds an AI-powered programming assistant that allows developers to generate code using natural language input. In 2023, the startup was valued at $1.25 billion in a funding round led by General Catalyst.

More recently, Windsurf had been seeking to raise new capital at a $3 billion valuation—a figure OpenAI now appears willing to match.

Expanding AI coding tools amid rising competition

The acquisition would strengthen OpenAI’s position in the fast-growing market for AI-assisted programming tools. In this space, OpenAI competes with companies like Anthropic, Microsoft-owned GitHub, and startup Anysphere, which develops the AI coding tool Cursor and is reportedly targeting a valuation of nearly $10 billion.

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If finalized, the deal could signal a broader trend toward consolidation in the AI sector. As the number of AI startups grows, so does the pace of acquisitions. OpenAI has previously acquired several companies, including vector database firm Rockset and remote collaboration platform Multi.

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Summary
  • According to Bloomberg, OpenAI is planning to acquire AI startup Windsurf for about $3 billion, which would be the company's largest acquisition to date.
  • Windsurf offers a tool that allows developers to use AI to generate code using natural language, and was previously known as Codeium.
  • With the potential acquisition, OpenAI aims to strengthen its position in the market for AI-powered programming tools, following a trend of increasing acquisitions in the industry.
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Max is the managing editor of THE DECODER, bringing his background in philosophy to explore questions of consciousness and whether machines truly think or just pretend to.
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