OpenAI's Largest Acquisition: $3 Billion Deal for Windsurf, Formerly Codeium, to Boost AI Coding Market Presence
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OpenAI is reportedly in advanced discussions to acquire Windsurf, an AI-powered coding assistant previously known as Codeium, for approximately $3 billion. This move would mark OpenAI's largest acquisition to date, signaling its intent to expand its presence in the AI-assisted coding market. The acquisition follows OpenAI's release of Codex CLI, an agent capable of writing and editing code, indicating a strategic push into the coding assistant space.
The potential acquisition comes after OpenAI had previously considered purchasing Cursor, another AI coding tool, but those talks did not materialize. Windsurf's annualized recurring revenue stands at about $40 million, significantly less than Cursor's reported $200 million. This move aligns with the growing trend of 'vibe coding,' a term coined by OpenAI co-founder Andrej Karpathy, which leverages AI to automate coding tasks.
The deal, if completed, would position OpenAI in direct competition with other AI coding assistant providers, including Anysphere, the maker of Cursor, which has been in talks to raise capital at a valuation of about $10 billion. This acquisition reflects OpenAI's strategic move to capture a significant share of the code generation market.
Why is OpenAi buying Windsurf? This is why - massive talent team for 1% marketcap
And BUY vs build - not just product but the community as well. https://t.co/Ur1vd9lAiD
