OpenAI Agrees to Buy Windsurf for $3 Billion
Deal News | May 06, 2025 | Zawya
OpenAI is reportedly set to acquire the artificial intelligence-assisted coding tool, Windsurf, for approximately $3 billion, according to Bloomberg. The proposed acquisition stands as OpenAI's largest to date and aligns strategically with its goal to enhance the coding capabilities of its ChatGPT models. Windsurf, previously known as Codeium, was valued at $1.25 billion during a funding round led by General Catalyst in August. It had been in discussions with potential investors, including General Catalyst and Kleiner Perkins, aiming for a $3 billion valuation. The acquisition remains pending as neither OpenAI nor Windsurf provided immediate comments. The deal underscores OpenAI's continued expansion amidst increasing competition in the AI-enhanced coding sector.
Sectors
- Artificial Intelligence
- Technology
- Venture Capital
Geography
- United States – OpenAI and Windsurf's operations and the involvement of investors General Catalyst and Kleiner Perkins, major U.S. venture capital firms, indicate a primary geographical focus in the United States.
- India – The article was reported by journalists based in Bengaluru, India, pointing to its global interest and impact.
Industry
- Artificial Intelligence – The article revolves around OpenAI's acquisition of an AI-based coding tool, highlighting the growing importance of AI in software development.
- Technology – The acquisition of Windsurf by OpenAI illustrates ongoing tech industry consolidations and innovations in code development tools.
- Venture Capital – Windsurf's valuation increase and recent funding rounds indicate active involvement of major venture capital firms in tech-driven ventures.
Financials
- 3 billion – The reported acquisition price for OpenAI’s purchase of Windsurf.
- 1.25 billion – Windsurf's valuation following its last funding round in August.
- 150 million – The amount raised by Windsurf in a funding round led by General Catalyst.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| OpenAI | Acquiring Company | Company | An artificial intelligence research organization, known for developing ChatGPT and leading in AI innovations. |
| Windsurf | Target Company | Company | Formerly known as Codeium, Windsurf is an AI-assisted coding tool aiming to enhance software development processes. |
| General Catalyst | Investor | Company | A leading venture capital firm involved in Windsurf's past funding rounds. |
| Kleiner Perkins | Investor | Company | Prominent venture capital firm engaged in potential investment discussions with Windsurf. |
| Greenoaks | Investor | Company | Investor in Windsurf, participated in previous funding rounds. |