Google parent Alphabet has struck a deal to acquire top talent and licensing rights from AI coding startup Windsurf, according to a Bloomberg report. The tech giant will not take a stake in Windsurf but its top executives including CEO Varun Mohan and co-founder Douglas Chen have been hired to work at Google’s DeepMind unit.
Notably, Windsurf had previously agreed to be acquired by OpenAI for $3 billion. The deal, however, fell apart reportedly due to ChatGPT maker’s tensions wit Microsoft – it’s biggest investor. OpenAI didn’t want Microsoft to use Windsurf’s intellectual property and it turned out to be one of the sticking points in the two companies’ talks as OpenAI restructures to a commercial entity. As per the existing agreement Microsoft has wit OpenAI, it is entitled to access the AI startup’s technology.
The Bloomberg report quoted an OpenAI spokesperson as confirming that the exclusivity period on the acquisition offer had lapsed which left Windsurf free to consider other bids.
Chris Pappas, a Google spokesperson while confirming the development to The Verge, said, “Gemini is one of the best models available and we’ve been investing in its advanced capabilities for developers,”
“We’re excited to welcome some top AI coding talent from Windsurf’s team to Google DeepMind to advance our work in agentic coding.” He added.
“We are proud of what Windsurf has built over the last four years and are excited to see it move forward with their world class team and kick-start the next phase.” Mohan and Chen said in a statement quoted by The Verge.
Windsurf is a among a number of new age companies that have build AI based coding assistants to allow users to write code based on natural language prompts. The startup was founded in 2021 and since then it has raised over $200 million from investors like Greenoaks Captial Partners and AIX Ventures.
