OpenAI in Talks to Acquire Windsurf for $3 Billion
OpenAI is in advanced discussions to acquire Windsurf, an artificial intelligence-powered coding assistant, for approximately $3 billion, according to a Bloomberg report citing a person familiar with the matter. If finalized, this would mark OpenAI’s largest acquisition to date.
Potential Landmark Deal
The talks for the acquisition are still ongoing and not completed, with a chance that terms may change or the deal may collapse, sources informed Bloomberg.
Windsurf is said to be seeking funding at a similar $3 billion valuation, with talks underway with leading investors such as Kleiner Perkins and General Catalyst. The company raised $150 million last year in a round led by General Catalyst, valuing the company at $1.25 billion.
Expanding AI Portfolio
The potential acquisition aligns with OpenAI’s growing interest in expanding its enterprise and developer tool offerings, particularly as AI-powered coding assistants gain traction. Tools like GitHub Copilot, also powered by OpenAI models, have proven the commercial potential for AI in software development.
This would also continue OpenAI’s trend of acquiring infrastructure and AI-focused startups. In 2024, the company acquired Rockset, a search and analytics platform, in a high-profile deal to bolster backend infrastructure for its enterprise solutions.
Also read: US Considers New Sanctions on China’s DeepSeek Over AI and Technology Access
AI Investment Boom Continues
The reported deal for Windsurf by the AI sector is a testament to ongoing investor faith in the AI industry, which has witnessed skyrocketing valuations driven by the mass adoption of applications such as ChatGPT and the emergence of AI agents. OpenAI itself is reportedly raising a new funding round of as much as $40 billion, which could take its valuation to $300 billion.
