News Summary

OpenAI is reportedly in discussions to acquire Windsurf, an AI coding assistant formerly known as Codeium, for approximately $3 billion. This potential acquisition would mark OpenAI’s largest purchase and position it in direct competition with other AI coding assistant providers, such as Anysphere’s Cursor, which is backed by the OpenAI Startup Fund. The deal could potentially impact the credibility of the fund, as Cursor is one of its significant investments. Windsurf, founded in 2021 by Varun Mohan and Douglas Chen, has raised $243 million from investors, including Greenoaks Capital and General Catalyst. The company has an annualized recurring revenue of around $40 million, significantly lower than Cursor’s $200 million. The announcement of the acquisition is expected later this week, and Windsurf users have already received communications regarding potential changes, including an option to lock in access to the coding editor at a monthly fee.