Openai still made its biggest move. We are seriously promoting AI coding startup Windsurf as developer tools. According to Bloomberg, the ChatGpt maker has reached an agreement to buy Windsurf, previously known as Codeum, for a deal worth around $3 billion.
The report added that the acquisition has not yet ended, but that it will ultimately mark the biggest open ry.
“Openai has agreed to purchase Windsurf, an artificial intelligence aid coding tool previously known as Codeium, for around $3 billion. According to those familiar with the issue, it marks the biggest acquisition of ChatGPT makers to date,” reported Bloomberg.
Windsurf is in fundraising consultations with top investors including General Catalyst and Kleiner Perkins, and is aiming to value it at a $3 billion valuation. Last August, the startup was valued at $1.25 billion, following a $150 million funding round led by general Catalyst, with Kleiner Perkins and Greenoaks also supporting the company.
The transaction makes a lot of sense. Openai is steadily improving ChatGpt’s coding skills with each new model, and Windsurf’s tools will help to further boost the bar, especially as competition with Github Copilot heats up.
News of the acquisition arises days after Apple partnered with Amazon-backed startup Humanity to build an AI-powered “atmosphere” platform. Vibe coding is how developers explain what they want and AI generates code. It’s quickly catching up as tech companies try to streamline software development and reduce engineering bottlenecks.
The space is currently led by agile AI startups such as Windsurf, Replit, Cursor, Bolt and Lovable. These tools allow developers to build apps using natural language and skip many of the traditional coding process. While the big tech companies are catching up, startups are still driving innovation.
Meanwhile, this is not the first time Openai has used acquisitions to enhance its functionality. Last year I bought Rockset, a database analytics company, in a nine-figure stock transaction. The move aims to provide Openai’s better infrastructure to the enterprise offering.
Openai’s growth was explosive. The company’s weekly active users passed 400 million in February, just two months ago. It is reportedly raising up to $40 billion in a new round led by SoftBank, valueating the company at $300 billion.
When you buy Windsurf, you add fuel to that momentum, not only improving what Openai already has, but also dominating AI coding.
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