OpenAI Set to Acquire AI Coding Startup Windsurf in $3 Billion Deal

In what would mark its largest acquisition to date, OpenAI is reportedly set to acquire Windsurf, an AI-powered coding assistant formerly known as Codeium, for a staggering $3 billion.

According to sources familiar with the matter, the deal is not yet finalized but is expected to significantly strengthen OpenAI’s position in the competitive landscape of AI-driven programming tools.

The acquisition, if completed, would bolster OpenAI’s capabilities in developing intelligent coding assistants—tools that can generate, debug, and optimize code using natural language prompts. As of now, both OpenAI and Windsurf have declined to comment on the deal.

Previously operating under the name Exafunction Inc., Windsurf has quickly risen through the ranks of AI coding startups. Last year, the company was valued at $1.25 billion in a funding round led by General Catalyst.

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More recently, Windsurf entered talks with top investors including Kleiner Perkins and General Catalyst to raise new funding at a valuation of around $3 billion—a number that OpenAI appears to have matched in its acquisition offer.

Windsurf’s technology competes in a fast-growing sector that already includes heavyweights like GitHub Copilot (owned by Microsoft) and Claude by Anthropic, another major OpenAI rival. Other emerging players, such as Anysphere’s Cursor, have also entered the race, drawing considerable investor attention.

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The acquisition news comes on the heels of OpenAI finalizing a $40 billion financing round led by SoftBank, bringing its valuation to a jaw-dropping $300 billion.

With this financial momentum, the move to acquire Windsurf is seen as a strategic play to expand OpenAI’s influence in developer tools and enterprise software, an area of growing interest among major tech players.

Additionally, OpenAI recently announced it would abandon its plans to restructure into a more conventional for-profit company following public scrutiny. The Windsurf acquisition may reflect a broader shift in OpenAI’s strategy—investing heavily in innovation and tools that directly serve developers and enterprise clients.

As AI coding assistants become increasingly sophisticated, the competition to dominate this market is heating up. OpenAI’s potential acquisition of Windsurf signals its intent to not only lead in consumer-facing AI, like ChatGPT, but also to become the go-to platform for developers seeking cutting-edge tools to boost productivity.

The acquisition could also reshape the developer ecosystem by integrating Windsurf’s technology into OpenAI’s existing suite of tools, potentially offering even tighter integration with its flagship products.