In a surprising turn of events, OpenAI’s $3 billion acquisition of AI coding startup Windsurf has collapsed, with Google DeepMind swooping in to secure Windsurf’s leadership team. CEO Varun Mohan and co-founder Douglas Chen, along with top researchers, are now joining Google’s AI division, but Windsurf remains independent. Google has opted for a $2.4 billion non-exclusive license for Windsurf’s technology, allowing the startup to engage in external partnerships. Despite losing key personnel, Windsurf continues operations under interim CEO Jeff Wang, who reassured users that their enterprise AI coding tools remain intact. This strategic move exemplifies a trend known as a “reverse acquihire,” where tech giants entice talent while avoiding regulatory scrutiny. The AI landscape is rapidly shifting, emphasizing the importance of both technology and the skilled individuals behind it. As competitors race for innovation, the battle for AI dominance intensifies, leaving OpenAI grappling with its acquisition setbacks.
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OpenAI-Windsurf Partnership Collapses as Google Secures CEO Varun Mohan and Licenses Technology for ₹20,600 Crore
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