OpenAI is making a major move by acquiring Windsurf, previously known as Codeium, for around $3 billion, marking its largest acquisition yet. The deal, first reported by Bloomberg, is set to enhance ChatGPT’s coding capabilities, positioning OpenAI more strongly in the growing market for AI-driven coding tools that turn natural language into code.
This acquisition aligns with OpenAI’s ongoing strategy of improving its AI models for developers. ChatGPT’s Pro version already offers developer-focused features, including a code interpreter and a collaborative coding tool called Canvas. While OpenAI and Windsurf haven’t officially commented, Windsurf CEO Varun Mohan hinted at a big announcement on social media.
The deal follows reports that Windsurf was in funding talks with venture capital firms Kleiner Perkins and General Catalyst, aiming for a $3 billion valuation. Previously, Windsurf secured $150 million in a funding round led by General Catalyst, valuing the four-year-old company at $1.25 billion.
This is not OpenAI’s first significant acquisition. Last year, it acquired Rockset, a search and analytics company, to bolster its infrastructure for enterprise products. As the market for AI-powered tools intensifies, OpenAI is competing with companies like Anthropic (which offers AI assistant Claude), Microsoft (owner of GitHub), and Anysphere’s Cursor, which has raised $900 million at a $9 billion valuation.
OpenAI itself is in the process of raising up to $40 billion in a new funding round led by SoftBank, potentially valuing the company at $300 billion. Its user base has also grown rapidly, reaching over 400 million weekly active users, up from 300 million in December. The acquisition of Windsurf is another bold step in OpenAI’s effort to dominate the AI-powered coding space.