OpenAI Set to Acquire AI Coding Tool Windsurf for $3 Billion

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May 06, 2025

OpenAI is reportedly in the process of acquiring Windsurf, an AI-assisted coding tool, for approximately $3 billion. Though the deal is not yet finalized, Windsurf, formerly known as Codeium, has been in discussions with investors such as General Catalyst and Kleiner Perkins to secure funding at a $3 billion valuation.

Last August, Windsurf reached a valuation of $1.25 billion following a $150 million funding round led by General Catalyst. Other investors include Kleiner Perkins and Greenoaks. If completed, this acquisition would mark OpenAI's largest purchase to date, enhancing the coding capabilities of its ChatGPT platform. The company has been consistently upgrading ChatGPT's coding features with each new model release, facing increasing competition in the AI space.

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I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.