Google Acquires License to Windsurf’s AI Technology for $2.4 Billion

Google, a subsidiary of Alphabet Inc., has signed an agreement to license artificial intelligence technologies developed by the startup Windsurf. The value of the deal is estimated at approximately $2.4 billion, according to reports by The Wall Street Journal and Reuters, citing sources familiar with the matter.

According to Reuters, Google has also hired Windsurf CEO Varun Mohan, co-founder Douglas Chen, and several key research and development staff. They have joined Google’s DeepMind division, where they will focus on projects related to AI-assisted code generation.

Earlier, Windsurf was in negotiations to be acquired by OpenAI for a reported $3 billion. However, that deal fell through. Sources indicated that Microsoft, OpenAI’s main investor, may have raised objections, leading to the collapse of the agreement.

Under the new arrangement, Google is not acquiring ownership or control of Windsurf. Instead, the company has secured a non-exclusive license to utilize a portion of Windsurf’s proprietary technologies. The majority of Windsurf’s workforce will remain with the company, which will continue operating independently. Jeff Wang has been appointed as interim CEO, and Graham Moreno has assumed the role of company president.

The agreement is seen as part of Google’s broader strategy to strengthen its position in the field of artificial intelligence, particularly in the area of automated software development tools. Industry analysts note that the structure of the deal allows Google to avoid potential regulatory scrutiny associated with corporate acquisitions.