OpenAI is negotiating to acquire Windsurf for $3 billion, aiming to boost its AI coding tools

OpenAI is in negotiations to acquire Windsurf, an AI coding tool previously known as Codeium, for around $3 billion, according to a new report.
The potential acquisition, first reported by Bloomberg and now confirmed by CNBC, would be OpenAI’s largest deal to date. The company has made a number of smaller acquisitions, including Rockset and Multi.
Windsurf has become popular among developers looking for a little extra help with their coding. It competes with tools like Cursor and Replit and was recently valued at $2.85 billion, while boasting an annual recurring revenue of $40 million.
The interest in Windsurf comes as OpenAI looks to stay ahead of the pack in the rapidly evolving generative AI space. Rivals like Google, Anthropic and Elon Musk’s xAI are pouring huge amounts of cash into the sector.
OpenAI recently closed a record $40 billion funding round that valued the company at $300 billion. It has also launched new AI models that can interpret user sketches, o3 and o4-mini.
OpenAI had previously considered acquiring Anysphere, another AI coding assistant, but those talks did not materialise. Now it appears the company has set its sights on Windsurf.
However, the company’s interest in AI coding tools is far from a one-off. OpenAI has engaged with more than 20 companies in this space, according to the report. It’s clearly a strategic push to enhance its offering in the realm of AI programming.