13-07-2025
Microsoft blocks OpenAI's Windsurf Deal, Google wins big
OpenAI Windsurf Deal: Earlier this year, reports emerged that ChatGPT maker OpenAI was gearing up to acquire the AI startup, Windsurf, for a whopping $3 billion. However, Bloomberg is now saying that the acquisition has fallen through, and that instead of being acquired by OpenAI, Windsurf has struck a deal with Google. Now, as part of the deal between Windsurf and Google, Windsurf's key talent will be joining the Google DeepMind team. Microsoft blocks OpenAI's Windsurf Deal.(AFP File)
OpenAI And Windsurf: Why The Deal Couldn't Go Through?
The proposed acquisition by OpenAI, for which an agreement had been reached, reportedly failed due to tensions with Microsoft, OpenAI's lead investor. The primary reason for this was Windsurf's unwillingness to allow Microsoft access to its intellectual property, a point on which OpenAI could not secure Microsoft's agreement. This is possible because Microsoft's current arrangement with OpenAI grants it access to OpenAI's technology.
OpenAI did confirm recently that its deal with Windsurf had gone past the exclusivity period and had lapsed, which made it possible for Windsurf to start considering offers from other players — in this case, Alphabet's Google.
What Does Google Get
Under the new arrangement, Google will not be taking a stake in Windsurf. Instead, it will gain the company's talent, including CEO Varun Mohan, co-founder Douglas Chen, and other members of the research and development team. Alongside this, Windsurf will license its in-house technology stack to Google on a non-exclusive basis, meaning Windsurf can also license the same technology to other companies, including Google's competitors.
'We're excited to welcome some top AI coding talent from Windsurf's team to Google DeepMind to advance our work in agentic coding,' Google told TechCrunch.
'Big welcome to @_mohansolo (Varun Mohan) and others from the Windsurf team joining Deepmind : ),' Logan Kilpatrick, Google's lead for AI Studio posted on X.
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