ChatGPT maker OpenAI to acquire AI coding tool Windsurf in $3 bn deal

In a significant move to bolster its AI capabilities for developers, OpenAI, the creator of ChatGPT, has reportedly agreed to acquire Windsurf, an AI-powered coding assistant previously known as Codeium, for approximately $3 billion. Sources familiar with the matter disclosed the potential acquisition, which would mark OpenAI's largest to date, as per reports.

While the deal is yet to be finalized and both companies have declined to comment, the acquisition signals OpenAI's intent to aggressively compete in the burgeoning market for AI-driven coding tools. These systems are designed to aid programmers by generating code based on natural language prompts, reports further revealed.

Windsurf, operating under the formal name Exafunction Inc., was recently valued at $3 billion during funding discussions with investors like Kleiner Perkins and General Catalyst. This represents a substantial increase from its $1.25 billion valuation in a previous funding round last year.

The acquisition comes at a time of increasing competition in the AI coding assistant space, with rivals such as Anthropic and Microsoft-owned Github already offering similar tools. Several startups, including Anysphere, the company behind Cursor, have also attracted significant investor interest.

This potential acquisition follows OpenAI's recent $40 billion financing round led by SoftBank, which valued the company at $300 billion. Earlier this week, OpenAI also announced it would retain its non-profit structure following public feedback on a proposed restructuring.