Big moves are happening in the AI world—OpenAI (yep, the ChatGPT people) is reportedly about to buy a hot startup called Windsurf for a jaw-dropping $3 billion. That’s their biggest acquisition ever. While the deal isn’t 100% finalized yet, insiders say it’s looking solid. Both companies are keeping quiet for now, but the buzz is definitely out.
Windsurf, which used to go by the name Exafunction, builds AI tools that help developers write code using plain English. Basically, it's like having a supercharged coding buddy that can generate, fix, and optimize code with ease. With more devs hopping on the AI train, Windsurf has quickly become one to watch.
This move isn’t just a one-off—tech giants are going all-in on AI coding assistants. The generative AI tool market was worth only $18.6 million in 2023, but it’s expected to explode to $12.6 billion by 2028. Microsoft (with GitHub Copilot), Google, Amazon, and IBM are already in the game, while newer players like Anysphere are gaining traction too.
Windsurf’s rise has been impressive. Just last year, it was valued at $1.25 billion. Now? A massive $3 billion. That caught OpenAI’s attention—and with its own massive $300 billion valuation and backers like SoftBank and Microsoft, OpenAI is ready to go shopping.
This acquisition is part of OpenAI’s bigger shift from nonprofit roots to commercial powerhouse. Even though it started with a mission to build “safe AI,” it now faces big bills—like a projected $28 billion in operating costs next year. So snapping up innovative startups like Windsurf helps it stay ahead and build an AI empire that goes way beyond chatbots.
OpenAI’s playing big-league chess, and Windsurf might be their next power move.