OpenAI in Advanced Talks to Acquire AI Coding Tool Windsurf for $3 Billion

OpenAI is reportedly in discussions to acquire Windsurf, an artificial intelligence-powered coding assistant previously known as Codeium, for approximately $3 billion, according to Bloomberg. If completed, this would mark the company’s largest acquisition to date and a significant move in the intensifying race to dominate the AI-driven software development space.

The negotiations, which are still ongoing, have not been finalized and could shift or fall apart, per Bloomberg. Both OpenAI and Windsurf declined to comment on the potential deal.

Windsurf, legally known as Exafunction Inc., has been making waves in the AI community since its founding in 2021. The company recently explored new funding rounds with prominent investors such as Kleiner Perkins and General Catalyst, aiming for a $3 billion valuation. Just last year, Windsurf was valued at $1.25 billion in a round also led by General Catalyst, according to Bloomberg.

The San Francisco-based startup has raised over $200 million in venture backing, with support from Greenoaks Capital Partners, AIX Ventures, and others, as reported by PitchBook.

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Should the acquisition move forward, OpenAI would position itself more directly against other major players in the AI coding sector, including Anthropic, Microsoft-owned GitHub, and Anysphere. The deal would further indicate the sector’s shift toward consolidation, as companies seek to secure strategic advantages in a rapidly evolving market.

OpenAI has made a number of strategic acquisitions recently, including Rockset, a vector database startup, and Multi, a platform for remote team collaboration. The Windsurf deal would stand out both in scale and in signaling OpenAI’s intent to deepen its influence in the software development arena.

Investor appetite for AI coding platforms continues to grow. Anysphere, the developer behind the Cursor coding assistant, has been in discussions to raise funding at a valuation nearing $10 billion, Bloomberg noted earlier this year.

Source: Bloomberg