Daily Newsletter

01 January 1970

Daily Newsletter

01 January 1970

OpenAI to acquire Windsurf for $3bn

Windsurf, which was previously known as Codeium, has been engaging with investors for a funding round.

May 06 2025

OpenAI, an AI research lab backed by Microsoft, has agreed to acquire Windsurf, an AI-assisted coding tool, for approximately $3bn, reported Bloomberg citing people familiar with the matter.

This acquisition is expected to enhance ChatGPT’s coding functionalities and marks OpenAI’s largest acquisition deal to date.

Both OpenAI and Windsurf declined to comment on the matter, the report said.

In April 2025, Bloomberg reported that OpenAI was in talks to acquire Windsurf.

Windsurf, which was previously known as Codeium, has been engaging with investors such as Kleiner Perkins and General Catalyst for a funding round.

Windsurf was seeking valuation of around $3bn.

The startup achieved a valuation of $1.25bn in August 2024 after a $150m funding round led by General Catalyst. Kleiner Perkins and Greenoaks are also among the investors in Windsurf.

In April 2025, OpenAI raised $40bn in a new funding round, propelling its valuation to a post-money total of $300bn.

The funding round was led by Japanese multinational investment holding company SoftBank Group. It saw participation from existing investors including Microsoft, Coatue Management, Thrive Capital, and Altimeter Capital.

SoftBank said it will syndicate up to $10bn of the $40bn investment to co-investors, with its effective investment amount expected to reach $30bn.

OpenAI plans to use the funds to support ongoing AI research and infrastructure scaling efforts, with a focus on delivering advanced tools.

The funding will also help OpenAI in continue developing AI systems to drive scientific discovery, allow personalised education, and improve enhance human creativity.

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