SAN FRANCISCO (Diya TV) — OpenAI has reached an agreement to acquire Windsurf, an AI-powered coding assistant formerly known as Codeium, for approximately $3 billion, according to a report by Bloomberg News citing people familiar with the matter. If completed, the acquisition would mark OpenAI’s largest to date and significantly bolster its suite of developer tools.
The deal is not yet finalized, Bloomberg noted, and both companies have declined to comment publicly. Windsurf is led by Indian American Bay Area native Varun Mohan.
A fast-growing AI startup known for integrating artificial intelligence into software development workflows, Windsurf had recently been in discussions with investors, including General Catalyst and Kleiner Perkins, to raise funds at a $3 billion valuation, according to Bloomberg. The company was last valued at $1.25 billion in August 2023, following a $150 million Series B funding round led by General Catalyst, with participation from Kleiner Perkins and Greenoaks.
The acquisition is expected to strengthen OpenAI’s existing coding capabilities, particularly within ChatGPT and its Codex models. OpenAI has steadily improved code generation and debugging performance in each iteration of its AI models, including GPT-4 and the recently updated GPT-4-turbo. As the market for AI coding assistants grows increasingly competitive, acquiring Windsurf would give OpenAI a strategic advantage.
OpenAI’s push into the coding space is part of a broader expansion across verticals. The company has been actively investing in tools and infrastructure to enhance its enterprise offerings. In 2023, OpenAI acquired search and analytics startup Rockset in a nine-figure stock deal, aiming to boost backend capabilities for large-scale data handling.
Windsurf, launched under the name Codeium, has gained a strong following among developers for its seamless integration with popular coding environments and its ability to understand complex programming logic. Its tools have been positioned as direct competitors to GitHub Copilot, the AI-powered coding assistant developed by GitHub and OpenAI’s main rival, Microsoft.
As OpenAI’s user base continues to surge, with Reuters reporting over 400 million weekly active users as of February 2025—up from 300 million in December—the company is aiming to expand its technological stack through acquisitions and partnerships. The Windsurf acquisition would align with this growth strategy, especially as OpenAI seeks to enhance its value proposition for enterprise developers and technical teams.
Additionally, OpenAI is reportedly planning a major funding round led by Japan’s SoftBank Group, aiming to raise as much as $40 billion at a potential $300 billion valuation. That would place OpenAI among the highest-valued private tech companies globally.
While the terms of the Windsurf deal remain undisclosed, its scale signals OpenAI’s intent to remain at the forefront of AI development tools. As competition heats up with Microsoft, Google, Amazon, and emerging startups investing heavily in AI coding assistants, the acquisition could provide OpenAI with a crucial edge.
The agreement also reflects a broader trend in the AI industry: consolidating smaller, innovative startups with specialized technologies into larger platforms to accelerate deployment and stay competitive.
