According to Bloomberg, Windsurf, the manufacturer of popular AI coding assistants, is in talks that Openai will be acquired for around $3 billion.
If a transaction occurs, you will be directly competing with many other AI coding assistant providers, including Anysphere, the manufacturer of Cursors that Openai supported by the Openai Startup Fund.
Those familiar with Cursor’s cap table could risk the reliability of the Openai Startup Fund, given that the acquisition is one of Cursor’s biggest investors. It is not clear whether Openai has approached the cursor about the acquisition.
In addition to what sources told Bloomberg, there are some clues that something is going on between the two companies. A few days ago, Windsurf users received an email saying they had the option to lock access to the coding editor for $10 a month, as announced later this week.
Openai’s Chief Product Officer Kevin Weil also released a video yesterday celebrating Windsurf’s capabilities.
Windsurf, previously known as Codeium, is in talks to raise new funds at a $2.85 billion valuation led by Kleiner Perkins. Our report shows that the company has reached approximately $40 million in annual repeat revenue (ARR). Its revenue execution rate is much lower than the cursor, and is reportedly making $200 million on an ARR basis. Bloomberg reported last month that Cursor is in discussions to raise capital at a valuation of around $10 billion.
According to Pitchbook Data, Windsuf has raised $243 million from investors, including Greenoaks Capital and General Catalyst, since it was founded by Varun Mohan and his childhood friend and fellow MIT alumnus Douglas Chen.
Additional Reports by Saraperez