Microsoft-Backed OpenAI To Snap Windsurf For $3 Billion To Strengthen AI Coding Power: Report

Zinger Key Points

OpenAI to acquire AI coding tool Windsurf for ~$3B, aiming to strengthen its position in AI coding assistants.
The deal boosts OpenAI’s rivalry with global AI players as it works to balance nonprofit control and for-profit growth.
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ChatGPT parent OpenAI has agreed to buy Windsurf for about $3 billion, Bloomberg reported Tuesday citing unnamed sources familiar with the matter.

Windsurf is an artificial intelligence-assisted coding tool formerly known as Codeium.

The acquisition could help Microsoft Corp MSFT backed OpenAI take on competition in the market for AI-driven coding assistants.

Also Read: OpenAI And SoftBank’s Stargate Considers Major UK Investment To Fuel AI Growth

Windsurf, formerly Exafunction Inc., recently discussed raising funding at a valuation of $3 billion with investors.

On Monday, Sam Altman led OpenAI shared its pivot from transitioning fully to a public benefit corporation following legal pressure and investor concerns.

OpenAI CEO Sam Altman emphasized that OpenAI was founded as a nonprofit, but it is today a nonprofit that oversees and controls the for-profit, and will remain a nonprofit going forward.

OpenAI will continue working with Microsoft, regulators, and nonprofit commissioners to finalize its plans to retain its nonprofit parent’s control over its for-profit operations.

OpenAI recently finalized a $40 billion financing led by SoftBank Group Corp SFTBF SFTBY at a valuation of $300 billion.

OpenAI and its rivals faced stiff competition from a Chinese AI startup, DeepSeek, which claimed to develop competitive AI models at a fraction of the cost.

Meta Platforms, Inc. META and Microsoft Corp‘s MSFT upbeat quarterly financial results have been instrumental in easing investor tensions over the sustainability of AI investments.