OpenAI pursued Cursor maker earlier than coming into into talks to purchase Windsurf for $3B

​OpenAI is at the moment in superior discussions to accumulate Windsurf, an AI-powered coding assistant previously generally known as Codeium, for over $3 billion. This potential acquisition would mark OpenAI’s largest to this point and signifies its strategic push to solidify its place within the AI coding instruments market.​

Background: The Cursor Consideration

Earlier than turning its consideration to Windsurf, OpenAI had reportedly engaged in acquisition talks with Anysphere, the developer of Cursor, one other outstanding AI coding assistant. Cursor integrates Anthropic’s Claude 3.5 Sonnet mannequin and has garnered a big consumer base, boasting over one million day by day customers and annual recurring income exceeding $100 million as of January 2025. Regardless of OpenAI’s funding in Anysphere by its Startup Fund, acquisition discussions didn’t materialize, probably because of Anysphere’s excessive valuation nearing $10 billion. ​

Strategic Shift to Windsurf

With the Cursor deal not progressing, OpenAI shifted focus to Windsurf. Based in 2021 by MIT graduates Varun Mohan and Douglas Chen, Windsurf presents a strong AI coding assistant and has been gaining traction amongst builders. The corporate has raised over $200 million from buyers like Kleiner Perkins, Greenoaks Capital, and Basic Catalyst, and was lately valued at roughly $2.85 billion. ​

Implications and Business Dynamics

OpenAI’s pursuit of Windsurf underscores the intensifying competitors within the AI coding assistant area, with main gamers like Microsoft (with GitHub Copilot) and Anthropic (with Claude) additionally vying for dominance. The acquisition might improve OpenAI’s choices, particularly when built-in with its personal fashions like o3 and o4-mini, probably setting new requirements in AI-assisted coding. ​

Nevertheless, the transfer additionally raises questions on potential conflicts of curiosity, given OpenAI’s prior funding in Cursor. Business observers are keenly watching how this acquisition may reshape the panorama of AI coding instruments and what it means for competitors and innovation within the sector.​

Because the deal progresses, it will likely be important to watch regulatory responses and the broader impression on the AI improvement neighborhood.