OpenAI has agreed to acquire AI programming unicorn Windsurf for approximately $3 billion, marking its largest acquisition to date. This move aims to strengthen OpenAI's position in the competitive AI-driven coding assistant market. Windsurf, formerly known as Codeium, is an AI programming assistant tool that generates code based on natural language prompts, revolutionizing software development.
The acquisition underscores the intensifying competition in the AI programming assistant sector, where OpenAI faces rivals like Anthropic and Microsoft's GitHub, both offering AI tools for programmers. The deal, which has been in the works for some time, follows reports of ongoing negotiations between OpenAI and Windsurf.
Windsurf recently engaged in funding discussions with investors such as Kleiner Perkins and General Catalyst, valuing the company at around $3 billion. This valuation more than doubled from last year's $1.25 billion during a funding round led by General Catalyst. Windsurf, alongside tools like Cursor and Replit, has gained popularity among developers for its ability to quickly assemble code using AI models, a process referred to as "vibe code."
