OpenAI is in advanced discussions to acquire Windsurf, a fast-growing artificial intelligence startup focused on code generation and developer tools, in a deal that could value the company at approximately $3 billion, according to a person familiar with the matter.
If completed, the transaction would mark OpenAI’s largest acquisition to date.
Windsurf, formerly known as Codeium, is part of a new wave of generative AI platforms designed to streamline software development. The tool has become increasingly popular among programmers for its real-time coding assistance, positioning itself alongside competitors such as Cursor, Replit, and coding features from Microsoft, Anthropic, and OpenAI itself.
The discussions, first reported by Bloomberg and confirmed by CNBC, are ongoing and subject to change. The person providing the information requested anonymity due to the private nature of the talks.
A deal for Windsurf would represent a bet by OpenAI as it accelerates efforts to maintain a lead in the competitive generative AI market, where rivals such as Google, Anthropic, and xAI, backed by Elon Musk, are aggressively launching new products. Just weeks ago, OpenAI closed a landmark $40 billion funding round, pushing its valuation to $300 billion—the largest in private tech history.
Windsurf has attracted considerable attention from developers due to its intuitive interface and support for “vibe coding”—a term coined by former OpenAI founding member Andrej Karpathy to describe using AI to rapidly prototype and assemble code. This approach has become increasingly popular among engineers looking to streamline development workflows.
Earlier this year, TechCrunch reported that Windsurf was raising a funding round at a valuation of $2.85 billion, supported by notable investors including Founders Fund, General Catalyst, Greenoaks, and Kleiner Perkins.
If finalized, the acquisition would far surpass OpenAI’s previous transactions. Past deals include the acquisition of Rockset, a real-time analytics database provider, and Multi, a video collaboration platform, both completed in 2024. In 2023, OpenAI also acquired Global Illumination, a startup focused on AI-powered creative tools and infrastructure.
The potential Windsurf deal comes just days after OpenAI unveiled its latest AI models, o3 and o4-mini, capable of interpreting visual inputs such as hand-drawn sketches and diagrams—an advancement OpenAI describes as enabling the models to “think with images.”
The acquisition would further solidify OpenAI’s strategy of integrating top-tier AI tools into its ecosystem, while expanding its footprint in the developer productivity and software engineering space.
