OpenAI just bought this AI coding tool for $3B
06 May 2025

OpenAI, the parent company of ChatGPT, is acquiring Windsurf, an AI-assisted coding tool formerly known as Codeium.

The deal, which is worth about $3 billion, is OpenAI's biggest acquisition so far.

The move could make OpenAI more competitive in the fast-growing space of AI-powered coding assistants.

These tools are aimed at generating code from natural language commands.

Windsurf's valuation and funding discussions
Financial details

Windsurf (formerly Exafunction Inc), was recently in talks with investors, including Kleiner Perkins and General Catalyst, to raise funds at a $3 billion valuation.

The company secured a valuation of $1.25 billion in a funding round led by General Catalyst last year.

Now, OpenAI's acquisition is likely to further boost Windsurf's position in the AI coding tool market.Anthropic and Microsoft-owned GitHub also offer AI tools tailored for developers, drawing strong investor interest in start-ups building similar technologies.

OpenAI's recent developments and market competition
Industry landscape

OpenAI recently closed a $40 billion financing round led by SoftBank Group Corp., valuing the company at $300 billion.

In other news, the firm has announced that its nonprofit division will continue to oversee its for-profit operations, reversing earlier plans to transition to a fully for-profit structure.

OpenAI's business division, which has been operating under the nonprofit umbrella since 2019, will now become a Public Benefit Corporation (PBC).