OpenAI in Talks to Acquire Codeium’s Windsurf for $3 Billion

OpenAI is in discussions to acquire Codeium, the maker of the AI coding assistant Windsurf, for approximately $3 billion, according to Bloomberg News. If finalized, the deal would significantly expand OpenAI’s reach into developer tools—and raise questions about its investment strategy.

A Strategic Play With Potential Conflicts

Windsurf is one of the most widely used AI coding tools and a direct competitor to Cursor, a product developed by Anysphere. Notably, Cursor is backed by OpenAI’s own Startup Fund, and a potential acquisition of Windsurf could raise concerns about conflicts of interest.

A person familiar with Cursor’s cap table told Bloomberg that such a deal could undermine the credibility of the Startup Fund, especially if OpenAI didn’t approach Cursor in acquisition talks. There’s currently no public indication that OpenAI approached Cursor before entering discussions with Codeium.

Signals Pointing to a Deal

Clues about the deal have emerged beyond the reporting itself:

• Windsurf users recently received an email mentioning an upcoming announcement, offering the chance to lock in access at $10/month.

• Kevin Weil, OpenAI’s chief product officer, released a video yesterday publicly praising Windsurf’s capabilities—a move that raised eyebrows in light of the rumored acquisition.

The Competitive Landscape

Financial details suggest Windsurf trails Cursor in revenue but could offer strategic advantages:

• Codeium was previously in talks to raise funding at a $2.85 billion valuation, with Kleiner Perkins leading.

• It has reportedly reached $40 million in annualized recurring revenue (ARR)—significantly less than Cursor’s estimated $200 million ARR.

• Cursor was recently in talks to raise capital at a $10 billion valuation, per Bloomberg last month.

Founded in 2021 by Varun Mohan and Douglas Chen, both MIT graduates, Codeium has raised $243 million from investors like Greenoaks Capital and General Catalyst, according to PitchBook.

What This Means

If OpenAI moves forward with acquiring Windsurf, it would mark a bold expansion into developer tools—potentially setting up direct competition with companies it has previously backed. While this could unlock tighter integration with OpenAI’s own coding models, it may also complicate relationships within its startup ecosystem.

The move reflects how the race to own AI-powered software tools is intensifying, and how strategic acquisitions may increasingly clash with venture funding ethics. Windsurf could become a powerful asset—but not without shaking some foundations first.

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.