OpenAI to Acquire Coding Startup Windsurf for $3 Billion

OpenAI has agreed to acquire Windsurf, an AI-powered coding assistant formerly known as Codeium, in a deal valued at approximately $3 billion, according to a report from Bloomberg News citing unnamed sources. The acquisition, which has not yet closed, would be OpenAI’s largest to date and could significantly enhance its existing capabilities in code generation and developer tools.

Both OpenAI and Windsurf declined to comment on the report, according to Reuters.

Windsurf’s Rapid Rise in Valuation

Windsurf has been one of the fastest-growing startups in the AI coding space. Just last August, it was valued at $1.25 billion after raising $150 million in a funding round led by General Catalyst. Kleiner Perkins and Greenoaks were also among its investors.

Recently, the company had reportedly been in talks with those same investors to raise additional funds at a $3 billion valuation—the same figure now tied to OpenAI’s acquisition offer.

The deal would bring Windsurf’s AI-assisted development tools under the umbrella of OpenAI’s fast-growing suite of enterprise and consumer AI services.

Strategic Move to Strengthen ChatGPT’s Coding Tools

OpenAI has steadily improved its AI’s programming capabilities through each iteration of its models. By acquiring Windsurf, the company would gain technology and talent that could complement ChatGPT’s existing code-writing features.

With competitors also advancing in the space—including GitHub Copilot (powered by OpenAI’s own models) and tools from startups and big tech firms—this acquisition could help OpenAI solidify its position in the developer tools market.

The company has made several targeted acquisitions in recent years to reinforce different parts of its AI stack. In 2023, OpenAI acquired Rockset, a search and analytics infrastructure company, in a nine-figure stock deal aimed at improving its enterprise data capabilities.

Growing User Base and Bigger Ambitions

OpenAI’s user base continues to expand rapidly. In February, the company surpassed 400 million weekly active users, up from 300 million in December. As usage grows, so does the demand for more robust, specialized AI features—including coding support.

The Windsurf acquisition comes as OpenAI is reportedly preparing to raise up to $40 billion in new funding at a $300 billion valuation, in a round expected to be led by SoftBank Group.

What This Means

If completed, the Windsurf acquisition would mark a major step in OpenAI’s strategy to deepen its role in software development and enterprise AI. For developers, it signals the likelihood of more advanced, integrated tools within ChatGPT or other OpenAI platforms—potentially making AI coding assistance faster, smarter, and more intuitive.

As AI becomes more embedded in how software is written and maintained, OpenAI is positioning itself not just as a model provider, but as a full-stack platform for the future of development.

Editor’s Note: This article was created by Alicia Shapiro, CMO of AiNews.com, with writing, image, and idea-generation support from ChatGPT, an AI assistant. However, the final perspective and editorial choices are solely Alicia Shapiro’s. Special thanks to ChatGPT for assistance with research and editorial support in crafting this article.