After failed acquisition talks with OpenAI, Google closes a billion-dollar deal with the promising AI startup Windsurf.
Google acquires Windsurf’s technology and CEO, according to the Wall Street Journal. For approximately 2.4 billion dollars, the tech giant gets a non-exclusive license for the startup’s coding technology and takes over a handful of employees. The new talent will be integrated into DeepMind, Google’s AI division.
Not an Acquisition, but License and Talent
According to sources, OpenAI previously backed out of negotiations with Windsurf. Google now manages to gain access to the technology without taking control of the company itself.
The focus is on so-called agentic coding: AI that can independently write, manage, and improve software. This fits into Google’s broader strategy to expand its AI capabilities and better support developers. Additionally, DeepMind wants to test AI-designed medicines on humans and is developing an AI model to communicate with dolphins.