In May, OpenAI aimed to acquire the AI coding startup Windsurf for $3 billion, but Microsoft denied approval due to competitive concerns with Visual Studio Code and GitHub Copilot. This led Windsurf’s talent to join Google DeepMind, enhancing the company’s agentic coding initiatives. Windsurf specializes in an AI-powered development editor akin to Cursor or Microsoft Visual Studio Code. Following Microsoft’s rejection, Windsurf secured a $2.4 billion non-exclusive license deal with Google and welcomed new team members, including CEO Varun Mohan and R&D specialists. The transition highlights ongoing tensions in OpenAI’s relationship with Microsoft, especially as OpenAI considers an antitrust complaint against the tech giant. Google is excited to integrate Windsurf’s expertise to advance technologies aimed at benefiting developers everywhere. This acquisition not only boosts Google’s AI capabilities but also signals strategic shifts within the AI coding landscape amid heightened competition.
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