OpenAI in Talks to Acquire AI Coding Startup Windsurf for $3 Bn: Report
The acquisition would position OpenAI in direct competition with other AI coding tool providers like Cursor
OpenAI is reportedly in discussions to acquire Windsurf, the maker of a popular AI-powered coding assistant, in a deal valued at around $3 billion, according to Bloomberg.
If finalised, the acquisition would position OpenAI in direct competition with other AI coding tool providers like Cursor.
Interestingly, Cursor is backed by OpenAI’s own Startup Fund, raising questions about potential conflicts of interest.
A source familiar with Cursor’s cap table told Bloomberg that the deal could undermine the credibility of the OpenAI Startup Fund, especially since Cursor is one of its largest investments. It remains unclear whether OpenAI ever approached Cursor with a similar acquisition offer.
Hints of an impending announcement surfaced earlier this week, when Windsurf users received an email offering them the option to lock in access to the coding editor for $10 a month, citing an upcoming update later in the week.
While OpenAI has yet to comment, the reported acquisition signals a deeper push into the developer tooling space—possibly in response to growing competition from GitHub Copilot, Cursor, and other coding copilots.
Recently, OpenAI released o3 and o4-mini, the latest in their o-series of models trained to think for longer before responding.
"For the first time, our reasoning models can agentically use and combine every tool within ChatGPT—this includes searching the web, analyzing uploaded files and other data with Python, reasoning deeply about visual inputs, and even generating images," OpenAI said in a blog post.
