Windsurfing: Goodbye to OpenAI, Agreement with Google

Following OpenAI's failure to confirm its acquisition, Google invested $2.4 billion in Windsurf and hired its CEO.

When two fight, the third wins. This proverb perfectly describes the events of the last few hours. OpenAI had offered $3 billion to acquire Windsurf , but the deal did not close by the expected deadline (July 11) due to the failure to reach an agreement with Microsoft. Google immediately seized the opportunity to invest $2.4 billion in the startup and hire CEO Varun Mohan along with other researchers.

Google mocks OpenAI

OpenAI had offered $3 billion to acquire Windsurf in early May . The company, led by Sam Altman, aimed to use the startup's technologies to improve AI-based coding tools (systems capable of writing code from natural language prompts).

Microsoft , which offers a similar tool (Github Copilot), had asked OpenAI for access to Windsurf's technologies. However, both OpenAI and Windsurf refused to comply with the Redmond company's request. Meanwhile, the deadline for confirming the acquisition expired. Windsurf wasted no time in accepting Google 's offer.

According to Bloomberg , the Mountain View company will pay $2.4 billion for the non-exclusive licensing rights to Windsurf's technologies. CEO Varun Mohan, co-founder Douglas Chen, and several researchers will work for Google DeepMind and subsequently on Gemini.

Google will not receive any stake in Windsurf and will have no say in the startup's business decisions. Similar agreements, also signed by Microsoft with Inflection AI, Google with Character.AI, and Meta with Scale AI, are defined as acquihire. This is a loophole to try to avoid antitrust investigations.