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 (NASDAQ: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 (OTC:SFTBF) (OTC: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. (NASDAQ:META) and Microsoft Corp‘s (NASDAQ:MSFT) upbeat quarterly financial results have been instrumental in easing investor tensions over the sustainability of AI investments.
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