Recommended reading

OpenAI set to splurge $3 billion on AI coding tool Windsurf as ChatGPT inventor looks to make programmers a bit more nervous

News
By published

Windsurf deal could give OpenAI a major coding advantage

Open AI CEO Sam Altman speaks during a talk session with SoftBank Group CEO Masayoshi Son at an event titled "Transforming Business through AI" in Tokyo, Japan, on February 03, 2025. SoftBank and OpenAI announced that they have agreed a partnership to set up a joint venture for artificial intelligence services in Japan today.
(Image credit: Getty Images / Tomohiro Ohsumi / Stringer)
  • OpenAI’s Windsurf move puts its rivals under pressure
  • OpenAI targets automating programming beyond the junior developer level
  • Developers may soon pick AI over IDEs if Windsurf integration hits full speed

OpenAI is set to acquire Windsurf, a top artificial intelligence-powered coding assistant, in a deal reportedly worth $3 billion.

At the time of writing, the deal has not yet been finalized, however, if it goes through, it would mark OpenAI’s largest acquisition to date and signal an aggressive push to dominate the rapidly evolving field of AI-assisted software development.

Windsurf, previously known as Codeium, is a product of Exafunction Inc., a startup that has attracted significant investor attention over the past year, as one of several emerging tools that translate plain language prompts into working code, reducing the need for manual development and, in some cases, automating tasks typically handled by junior engineers.

Raising the bar for AI coding tools

This acquisition would put OpenAI in more direct competition with Microsoft’s GitHub Copilot and Anthropic’s AI developer tools, two of the best coding platforms in this space.

Windsurf was recently valued at $1.25 billion and had been in talks with investors to raise new funding at a $3 billion valuation before OpenAI stepped in with an acquisition offer.

The deal follows OpenAI’s recent $40 billion investment round led by SoftBank, which pushed the company’s valuation to $300 billion.

With such financial backing, OpenAI has the resources to expand its coding solutions and integrate Windsurf’s capabilities into its broader ecosystem.

There has been no official public comment from either OpenAI or Windsurf, but sources suggest the acquisition could give OpenAI an edge in building AI assistants that better understand and execute complex programming tasks.

The company is likely targeting a unified platform that not only generates functional code but also adapts to individual developers’ habits and project needs.

Via Bloomberg

You might also like

TOPICS
Efosa Udinmwen
Efosa Udinmwen
Freelance Journalist

Efosa has been writing about technology for over 7 years, initially driven by curiosity but now fueled by a strong passion for the field. He holds both a Master's and a PhD in sciences, which provided him with a solid foundation in analytical thinking. Efosa developed a keen interest in technology policy, specifically exploring the intersection of privacy, security, and politics. His research delves into how technological advancements influence regulatory frameworks and societal norms, particularly concerning data protection and cybersecurity. Upon joining TechRadar Pro, in addition to privacy and technology policy, he is also focused on B2B security products. Efosa can be contacted at this email: udinmwenefosa@gmail.com

You must confirm your public display name before commenting

Please logout and then login again, you will then be prompted to enter your display name.