In a move that’s turning heads across the tech world, OpenAI is set to acquire AI-enabled coding platform Windsurf for a staggering $3 billion, as reported by Bloomberg. While Windsurf may not be a household name yet, it’s rapidly emerging as a quiet powerhouse in the generative AI coding space—and OpenAI’s interest signals just how much potential it holds.
Originally launched as Exafunction in 2021 by MIT alumni Varun Mohan and Douglas Chen, the startup began as a GPU optimization venture. As the generative AI boom unfolded, it pivoted to develop Codeium, an AI coding assistant that evolved into Windsurf—a platform now used by developers to accelerate code writing, integration, and deployment.
Windsurf’s advanced coding engine, particularly features like Cascade and Fast Tab, have made it a go-to for users seeking smart, efficient code generation. The company has raised over $240 million and was most recently valued at $1.25 billion, with reports of a fresh round pushing it to $3 billion.
As OpenAI faces off with players like Cursor, Replit, and Vercel’s v0, the Windsurf acquisition could become a cornerstone in its strategy to dominate the future of AI-assisted programming.