Saturday, July 12, 2025

OpenAI’s $3 Billion Acquisition of AI Coding Startup Windsurf: Exclusivity Period Ends

Share

The exclusivity period for OpenAI’s $3 billion acquisition offer for coding startup Windsurf has expired, allowing Windsurf to seek alternative opportunities, according to an OpenAI spokesperson. The offer was made two months ago, but it’s unclear if Windsurf is engaged with other potential buyers or still considering OpenAI’s proposal. AI coding startups, particularly those leveraging generative AI, have seen rapid growth, with Microsoft’s GitHub Copilot leading this space. Recently, the startup Cursor, supported by major VCs, raised $900 million with a valuation of $9 billion. Prior to its bid for Windsurf, OpenAI had explored acquiring Cursor, but discussions fell through as Cursor opted to remain independent. Founded in 2021 and originally named Codeium, Windsurf rebranded just before the acquisition offer and boasts a strong investor lineup, including Founders Fund and General Catalyst, with a reported valuation of $2.85 billion.

Source link

Read more

Local News