Report: OpenAI in Talks to Acquire AI-Powered Coding Tool Windsurf

OpenAI is reportedly in discussions with Windsurf, an artificial intelligence (AI)-powered coding tool, to acquire the technology.

The deal is worth $3 billion and would be OpenAI’s largest acquisition to date, according to a Wednesday (April 16) report from Bloomberg, which cited an unnamed source familiar with the matter.

The terms of the deal are not finalized, and talks could still change or fall apart, said the source, who asked not to be identified because it was a private matter.

Windsurf, formally known as Exafunction, was in discussions recently with investors to raise $3 billion, according to the report. Last year, the firm was valued at $1.25 billion in a deal led by General Catalyst.

Both OpenAI and Windsurf declined to comment when reached by Bloomberg.

If completed, the deal would be OpenAI’s largest acquisition on record, Bloomberg noted. The acquisition could help the company in the face of growing market demand for AI-enabled coding software, services that are offered by rivals like Anthropic, Anysphere and Microsoft-owned Github.

In another bid to stand out against competition, OpenAI is reportedly developing a social media platform similar to X.

As PYMNTS reported Tuesday (April 15), OpenAI CEO Sam Altman has been privately seeking feedback about the project from outsiders, which involves an internal prototype focused on ChatGPT’s image generation with a social feed.

The undertaking is still in the early stages, and it’s unclear if OpenAI would release its social platform as its own application to make it a part of ChatGPT or not.

OpenAI is also attempting to woo more business users with the launch of GPT-4.1, its latest ChatGPT model.

The company said its latest iteration is cheaper and better than its predecessors and possesses a bigger context window that allows for longer and more complex inquiries. The new models can handle text, images, audio and video. They are available now, but only as an application programming interface (API) for developers.

OpenAI also rolled out new discounts, allowing users to send more queries for lower costs, in a bid to lure enterprises to try out its services.