OpenAI has reached an agreement to acquire the artificial intelligence-assisted coding platform Windsurf for about $3 billion, marking a significant expansion for the ChatGPT developer. The deal, reported by Bloomberg on May 5, 2025, is set to be OpenAI's largest acquisition to date, although it has not yet been finalized. Both OpenAI and Windsurf have declined to comment on the acquisition.
Windsurf, previously known as Codeium, emerged from its origins as Exafunction, a GPU optimization platform launched in 2021 by MIT graduates Varun Mohan and Douglas Chen. The startup pivoted towards creating a coding platform as generative AI gained traction, eventually evolving into Windsurf. Currently, Windsurf is valued at approximately $1.25 billion, following a $150 million funding round led by General Catalyst last August. The company has raised over $240 million in total funding.
The acquisition comes at a time when OpenAI is intensifying its focus on enhancing coding capabilities within its platforms. OpenAI's recent models, o3 and o4-mini, have reportedly achieved higher benchmark scores in coding competitions like Codeforces, boasting 20% fewer major errors compared to earlier models. This performance has positioned OpenAI's offerings competitively against other coding platforms, including Cursor, Lovable, Vercel’s v0, and Replit.
Cursor, a direct competitor to Windsurf, has also been in the news, recently securing a $900 million investment led by Thrive Capital, Andreessen Horowitz (a16z), and Accel Ventures. This funding round has significantly boosted Cursor's valuation to $9 billion, more than tripling its previous worth. The aggressive funding landscape highlights the growing interest and competition in AI-assisted coding tools.
As OpenAI continues to innovate, the integration of Windsurf is expected to complement its existing ChatGPT capabilities, enhancing user experience and expanding the functionality of its AI products. The company has made several strategic acquisitions in recent years to bolster its offerings, including the purchase of Rockset, a search and database analytics startup, in a nine-figure stock deal last year.
OpenAI has also seen a surge in its user base, with weekly active users surpassing 400 million as of February 2025, a significant jump from 300 million just two months prior. This rapid growth underscores the increasing demand for AI-driven solutions across various sectors.
In addition to the acquisition of Windsurf, OpenAI is reportedly planning to raise up to $40 billion in a new funding round led by SoftBank Group, which would value the company at an impressive $300 billion. This potential funding is indicative of the confidence investors have in OpenAI's trajectory and its ability to lead in the AI space.
The ongoing developments in AI-assisted coding and the competitive landscape reveal a dynamic market where innovation and investment are key drivers of growth. As OpenAI prepares to finalize the Windsurf acquisition, industry watchers are keenly observing how this move will influence the coding platform sector and OpenAI's overall strategy.
With the tech landscape evolving rapidly, the integration of advanced coding capabilities is becoming increasingly crucial for companies looking to enhance their product offerings. The acquisition of Windsurf not only positions OpenAI to better compete with existing platforms but also signals a broader trend towards the consolidation of AI technologies in the coding space.
As the deal progresses, the tech community will be watching closely to see how OpenAI leverages Windsurf's technology and expertise to further innovate and improve its coding tools. The future of AI-assisted coding seems bright, with OpenAI at the forefront of this technological revolution.
