Google paid $2.4B for a team and a dream
OpenAI’s $3 billion bid to buy Windsurf, the buzzy AI coding startup, has officially fallen apart.
In a surprise move, Google DeepMind swooped in to hire Windsurf’s CEO, co-founder, and a handful of top researchers.
Google isn’t buying the company or taking a stake, but it is paying $2.4 billion for a nonexclusive license to some of Windsurf’s tech.
It’s a classic Big Tech manoeuvre: bring the talent in-house, get the tech rights, and sidestep regulatory drama.
Windsurf will continue operating independently, now led by interim CEO Jeff Wang.
Most of the 250-person team is staying put and continuing to build AI tools for enterprise clients.
Still, losing its leadership team could slow things down, especially after reaching $100 million in ARR earlier this year.
A few things to note:
Google DeepMind is licensing Windsurf’s tech for $2.4B, but the company remains independent.
OpenAI’s scrapped deal has stirred complications with Microsoft.
Windsurf continues operating, but without its founders, its future is less certain.
Leadership? Gone. Product? TBD
The failed OpenAI deal has also reportedly caused some tension with Microsoft, which already has access to OpenAI’s IP.
The concern is that if OpenAI had acquired Windsurf, Microsoft might’ve gained even more AI coding capabilities, something OpenAI didn’t want to hand over.
OpenAI fumbled the bag, and DeepMind said, “Don’t mind if I do.”