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OpenAI is broadening its footprint in the AI marketplace for coders: intentions to obtain Windsurf

OpenAI intends to procure the Windsurf startup, dealing with artificial intelligence, for roughly three billion US dollars. This is the firm’s response to growing rivalry in the field of artificial intelligence instruments for software developers.

According to Bloomberg, OpenAI reached a deal with Windsurf, though the transaction isn’t yet finalized. Both firms declined to comment on the forthcoming acquisition.

Windsurf CEO Varun Mohan hinted at this item in a cryptic post on X, writing: “Tomorrow will be a significant announcement!” — just a few hours before the deal with OpenAI became known. This suggests that he was anticipating the $3 billion agreement.

Windsurf, formerly known as Codeium, creates a programming tool based on AI, which enables users to produce source code based on prompts in natural language. Last year, the company was valued at $1.25 billion after a funding round led by General Catalyst.

Just recently, Windsurf held discussions with investors, including Kleiner Perkins and General Catalyst, regarding new financing at a valuation of $3 billion — the same amount that OpenAI is reportedly now willing to pay.

If the deal goes through, it will become OpenAI’s largest procurement to date. Previously, the ChatGPT developer bought Rockset, a database technology provider, for several hundred million dollars.

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