Google Hires Windsurf CEO and Co-Founder Amidst $2.4B Investment Following Collapse of OpenAI’s $3B Deal

Google has acquired top AI coding talent from Windsurf in a $2.4 billion deal, securing CEO Varun Mohan and co-founder Douglas Chen for its DeepMind division. This acquisition follows the collapse of OpenAI’s $3 billion attempt to buy Windsurf due to complications with Microsoft, which sought access to Windsurf’s intellectual property. Google will gain non-exclusive licensing rights to Windsurf’s innovative coding technology but won’t take equity, allowing the startup to operate independently under interim CEO Jeff Wang. This strategic move comes amidst a competitive landscape, with Google aiming to enhance its AI coding capabilities against rivals like Anthropic and OpenAI. Windsurf, founded in 2021 and previously known as Exafunction Inc., reported $100 million in recurring revenue by April 2025 and has attracted over $200 million in investments. The deal exemplifies the “acquihire” strategy used by tech giants to secure top talent while avoiding regulatory scrutiny.

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