OpenAI reaches agreement to buy startup Windsurf for $3 billion

OpenAI has agreed to buy Windsurf, an artificial intelligence-assisted coding tool formerly known as Codeium, for about $3 billion, according to people familiar with the matter, marking the ChatGPT maker’s largest acquisition to date.

The deal has not yet closed, said the people, who spoke on condition of anonymity to discuss private matters. OpenAI and Windsurf declined to comment.

The acquisition could help OpenAI take on rising competition in the market for AI-driven coding assistants — systems capable of tasks like writing code based on natural language prompting. Bloomberg News previously reported that the two companies were in discussions about an acquisition.

Windsurf, formally called Exafunction Inc., had recently been in talks with investors including Kleiner Perkins and General Catalyst to raise funding at a $3 billion valuation. The company was valued at $1.25 billion in a deal led by General Catalyst last year.