In what could be its biggest acquisition to date, OpenAI has reached an agreement to acquire Windsurf, an AI-powered coding assistant formerly known as Codeium, for approximately $3 billion, according to individuals familiar with the matter. The deal, however, has not yet been finalized.
Sources suggest that the acquisition is a strategic move by OpenAI to strengthen its position in the increasingly competitive market for AI-driven coding assistants. These tools, capable of generating code from natural language prompts, are fast becoming integral to modern software development.
Windsurf, legally known as Exafunction Inc., was recently in discussions with prominent investors like Kleiner Perkins and General Catalyst to raise funds at a $3 billion valuation.
The company had previously secured funding at a $1.25 billion valuation in a round led by General Catalyst.
Also Read | Zoplar Shuts Operations Months After Raising $3.4 Mn in Series A
This acquisition positions OpenAI to directly compete with major players in the space, including Anthropic and GitHub Copilot, which is backed by Microsoft. Newer startups like Anysphere, creator of Cursor, are also drawing investor attention as the demand for AI-enhanced coding tools surges.
The move follows OpenAI’s recent $40 billion financing led by SoftBank, which pushed the ChatGPT maker’s valuation to a staggering $300 billion. Earlier this week, OpenAI also announced it was rethinking its plans to restructure into a more traditional for-profit model following public criticism.
