OpenAI planning to acquire AI coding assistant Windsurf for $3B
What's the story
OpenAI is eyeing a $3 billion acquisition of Windsurf, the developer of a popular AI coding assistant, Bloomberg reports.
The deal, if it goes through, would put OpenAI directly in competition with other AI coding assistant providers like Anthropic, Microsoft-owned GitHub, and Anysphere.
Anysphere, the company behind Cursor, has previously been backed by the OpenAI Startup Fund.
Fund impact
Potential implications for OpenAI Startup Fund
The possible acquisition of Windsurf by OpenAI could have major implications for the OpenAI Startup Fund. After all, it is one of Cursor's major investors.
However, it remains unclear at this point if OpenAI has approached Cursor over a potential acquisition deal.
The situation remains fluid, and further developments are expected in due course.
User alert
Windsurf hints at major announcement
Several indicators point toward Windsurf and OpenAI being in advanced talks.
Just recently, Windsurf users received an email teasing a major announcement later this week. The email also gave users an opportunity to get access to the coding editor for a $10/month subscription.
Plus, Kevin Weil, OpenAI's Chief Product Officer, recently posted a video praising Windsurf's capabilities, further fueling speculation of acquisition talks between the two.
Financial status
Windsurf's financial standing and future plans
Windsurf, formerly Codeium, is in talks to raise more funds at a valuation of $2.85 billion. The round is being led by Kleiner Perkins.
The company has an annualized recurring revenue (ARR) of around $40 million.
Cursor, on the other hand, reportedly has an ARR of $200 million and is looking to raise funds at a valuation of about $10 billion.