OpenAI Moves Toward $3B Windsurf Acquisition

OpenAI is in advanced talks to acquire Windsurf, an AI-powered coding assistant formerly known as Exafunction, for about $3 billion in what would be its largest acquisition to date. This follows OpenAI’s unsuccessful attempt to purchase Cursor AI from Anysphere, highlighting fierce competition in the AI coding space. Windsurf's advanced capabilities would help OpenAI rival platforms like Anthropic, Anysphere, and Microsoft's GitHub Copilot. OpenAI recently launched new models such as o3, o4-mini, GPT-4.1, and introduced the Codex CLI product to further enhance developer productivity. Despite strong revenue growth and a valuation near $300 billion, OpenAI continues to face profitability challenges and competition from open-source options. The outcome of the Windsurf acquisition could reshape the future of AI-enabled coding tools.