OpenAI to acquire Windsurf in $3 billion deal to enhance AI coding tools

New Delhi: OpenAI, the creator of ChatGPT, is reportedly in advanced talks to acquire Windsurf.

Windsurf is an AI-powered coding assistant previously known as Codeium. The acquisition is valued at approximately $3 billion. The acquisition, if finalised, would be OpenAI’s largest to date.

Neither company has made any official comment. According to the news report, the move is part of OpenAI’s plan to grow in the coding tools market. These tools are designed to assist developers by generating code from natural language prompts.

Windsurf, which operates under the formal name Exafunction Inc., was recently valued at $3 billion in funding discussions with investors including Kleiner Perkins and General Catalyst.

This marks a sharp rise from its previous valuation of $1.25 billion during a funding round last year.

The acquisition underscores growing competition in the AI coding assistant segment, with players such as Anthropic and Microsoft-owned GitHub already offering rival solutions. Several startups, including Anysphere—the company behind Cursor—have also attracted significant investor interest.

This potential deal follows OpenAI’s recent $40-billion financing round led by SoftBank, which valued the company at $300 billion. Earlier this week, OpenAI also confirmed it would retain its non-profit governance model after receiving public feedback on a proposed restructuring.