Google bets big on AI coding, brings in Windsurf CEO Varun Mohan and others in $2.4 billion move

Google

Google has struck a major blow in the ongoing AI talent wars, bringing in Varun Mohan, co-founder and CEO of fast-rising coding AI startup Windsurf, along with several senior R&D staff. The deal, announced Friday, doesn’t involve an acquisition or equity stake—but Google is paying a hefty $2.4 billion in licensing and compensation.

Windsurf, best known for pioneering “vibe coding”—AI-assisted, intuitive software development—has seen a surge in developer adoption. According to a report by The Verge, the company will remain independent and retain rights to license its tech elsewhere, but Google now holds a non-exclusive license to key parts of its IP. Several team members, including co-founder Douglas Chen, will join Google DeepMind to supercharge efforts in “agentic coding”—the next wave of AI tools that act more like autonomous collaborators than autocomplete engines.

It’s a win for Google, and a loss for OpenAI, which was reportedly in exclusive talks to buy Windsurf earlier this year for $3 billion. That exclusivity window has now closed, according to an OpenAI spokesperson.

The move intensifies a fierce rivalry among AI giants. Meta recently tapped Scale AI founder Alexandr Wang to lead its AI strategy, part of a $14.3 billion investment. Microsoft, meanwhile, is leaning into AI-powered coding through its “agent mode” in Visual Studio Code. CEO Satya Nadella claimed in April that AI now writes 30% of all code at Microsoft.

For Google, Windsurf is a strategic pickup. It previously poached key staff from Character.AI, and now it’s arming Gemini with tools that could redefine how software is built. As Windsurf’s interim CEO Jeff Wang wrote on X, the core team will continue building the product for enterprises while its most valuable minds shift to the front lines of Big Tech’s AI coding war.