OpenAI Eyes Major Acquisition of AI Coding Tool Windsurf for $3 Billion

On February 7, 2025, Sam Altman, the CEO of OpenAI, was seen engaging in an insightful panel discussion at the Technical University in Berlin. The event highlighted the burgeoning landscape of artificial intelligence, a sector that OpenAI has been at the forefront of since its inception. Recent developments indicate that OpenAI is currently in negotiations to acquire Windsurf, an innovative AI tool designed to assist in coding. Reports suggest that the acquisition could be valued at approximately $3 billion, a figure that underscores the strategic importance of Windsurf in the competitive AI coding market.
Windsurf, which was previously known as Codeium, has garnered attention for its capabilities and stands as a competitor to several other prominent AI coding tools, most notably Cursor. These tools are emerging as essential resources for developers, allowing them to streamline their coding processes efficiently. Additionally, Windsurf finds itself in competition with established AI coding features offered by tech giants such as Microsoft, Anthropic, and even OpenAI itself.
The news of the potential acquisition was first reported by Bloomberg, and CNBC has since confirmed these discussions with a source familiar with the situation, who requested anonymity as the negotiations are still in progress. The urgency of this acquisition is indicative of OpenAI's commitment to maintaining a competitive edge in the rapidly evolving generative AI sector. The landscape is increasingly crowded, with rivals like Google, Anthropic, and Elon Musks xAI investing substantial resources into developing their own cutting-edge AI technologies.
In a clear demonstration of its ambitions, OpenAI recently completed a monumental $40 billion funding round, marking the largest funding effort recorded for any private tech company, with an impressive valuation of $300 billion. This financial backing positions OpenAI to pursue strategic acquisitions like that of Windsurf, enhancing its portfolio and capabilities.
In conjunction with these developments, OpenAI also unveiled its latest AI models, o3 and o4-mini. These models are particularly groundbreaking as they introduce the capability to 'think with images.' This means that they can interpret and analyze user-generated sketches and diagrams, regardless of their quality. This functionality is expected to revolutionize how developers and designers interact with AI systems in their coding and creative processes.
Windsurf is not alone in this burgeoning field; alongside tools like Cursor and Replit, it has quickly become a favorite among developers who are looking to 'vibe code.' This term, popularized by Andrej Karpathy, a former co-founder of OpenAI, emerged in February and refers to the collaborative and instinctive way developers leverage AI models to generate code for new software projects. Furthermore, earlier this month, Microsoft unveiled a new feature called Agent Mode within its widely used Visual Studio Code text editor. This feature parallels Windsurfs capabilities, further highlighting the fierce competition in the AI coding tool arena.
As the landscape evolves, it will be fascinating to see how these negotiations unfold and what the implications might be for the future of AI in coding and beyond.
CNBC's Jordan Novet contributed to this report.
WATCH: OpenAI considering building social network