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OpenAI buys AI coding tool Windsurf for $3 billion

OpenAI buys AI coding tool Windsurf for $3 billion
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OpenAI is buying artificial intelligence coding assistance tool Windsurf, formerly known as Codeium, in a deal that is not yet closed, worth about $3 billion, Bloomberg reports, making it the company’s largest acquisition.

The acquisition could help OpenAI enter the AI-powered coding assistant market, which ChatGPT's competitors already have, including Anthropic, Microsoft, and Cursor tool developers Anysphere.

Windsurf has been in talks with investors including Kleiner Perkins and General Catalyst to raise capital at a valuation of $3 billion. Last year, the company was valued at $1.25 billion.

Negotiations between Windsurf and OpenAI were reported in mid-April, shortly after the ChatGPT maker raised another $40 billion, bringing the AI startup's valuation to $300 billion.

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