OpenAI is reportedly in negotiations to acquire Windsurf, the maker of a popular AI coding assistant, for approximately $3 billion, according to Bloomberg.
Should the deal go through, OpenAI would find itself directly competing with other AI coding assistant providers, including Anysphere, the creator of Cursor, which has received backing from OpenAI’s Startup Fund. This potential acquisition could raise concerns about the credibility of the OpenAI Startup Fund, given that it is one of Cursor’s major investors. However, it remains unclear whether OpenAI has approached Cursor for a potential buyout.
In addition to the reports from Bloomberg, a few clues suggest something is brewing between the two companies. Recently, Windsurf users received an email informing them that, due to an upcoming announcement later this week, they could lock in access to the coding editor for $10 per month.
Furthermore, OpenAI’s Chief Product Officer Kevin Weil shared a video praising Windsurf’s capabilities, fueling speculation about the possible acquisition.
Windsurf, formerly known as , was reportedly in talks to raise new funding at a $2.85 billion valuation in February, led by Kleiner Perkins, according to. The company has reached an annualized recurring revenue (ARR) of approximately $40 million. In comparison, Cursor reportedly earns $200 million in ARR and has been discussing raising capital at a $10 billion valuation.
Founded in 2021 by Varun Mohan and his childhood friend Douglas Chen, Windsurf has raised $243 million from investors, including Greenoaks Capital and General Catalyst, accordin to PitchBook data.
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