Google plans to hire top executives, including CEO Varun Mohan and co-founder Douglas Chen from the startup Windsurf, as well as license their technology.
Hired Team and Deal Conditions
Google is set to allocate $2.4 billion for licensing Windsurf's technology and hiring its management team. A company spokesperson stated, 'We’re excited to welcome some top AI coding talent from Windsurf’s team to Google DeepMind to advance our work in agentic coding.' According to the terms of the deal, Google will not own a stake in Windsurf and will not control the company, but will have a license to its technologies, allowing Windsurf to retain the right to license its technology to other companies.
Collapse of OpenAI's Negotiations with Windsurf
Windsurf, which has 250 employees, will not be under Google DeepMind's control, allowing it to continue offering its AI coding tools to enterprise clients. The negotiations for acquiring Windsurf by OpenAI have become a factor hindering renegotiation between OpenAI and Microsoft. Previously, it was reported that OpenAI did not want Microsoft, its largest backer, to gain access to Windsurf’s AI coding technology, as the platform has rights to all intellectual property owned by OpenAI.
Future Prospects for Windsurf
Windsurf has attracted significant attention from major tech firms due to its growth, achieving an ARR of nearly $100 million, up from about $40 million a few months prior. This growth dynamic attracted companies like OpenAI and Google. The addition of Mohan, Chen, and other executives from Windsurf could enhance Google's ability to develop its own AI coding tools, positively impacting the company's competitiveness.
Thus, the deal between Google and Windsurf highlights new trends in the artificial intelligence industry, where companies seek to attract top talent without fully acquiring startups.
