Google has acquired coding startup Windsurf through a licensing deal, outbidding rival OpenAI for the company. The deal allows Windsurf to remain independent while key team members join Google’s DeepMind division.
Windsurf, founded in 2021 by MIT classmates, initially raised $2.85 billion at a valuation of $2.85 billion before securing a new funding round. Key members will now join Google DeepMind to advance agentic coding work.
The deal marks a setback for OpenAI, which had offered $3 billion to acquire Windsurf earlier. Microsoft’s GitHub Copilot, built on OpenAI technology, has gained widespread adoption in the AI coding startup category.
Source: https://fortune.com/2025/07/11/the-exclusivity-on-openais-3-billion-acquisition-for-coding-startup-windsfurf-has-expired