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

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.