In a significant shift within the AI industry, OpenAI’s planned $3 billion acquisition of voice AI startup Windsurf is officially off. Instead, Google DeepMind will hire Windsurf’s CEO Varun Mohan, cofounder Douglas Chen, and several of the company’s key R&D employees, according to an announcement on Friday by both companies.
Google DeepMind Strengthens Agentic Coding with Windsurf Talent
The newly acquired team from Windsurf will focus primarily on agentic coding efforts at Google DeepMind, specifically contributing to the development of Google’s AI model Gemini. Google emphasised that it is acquiring talent and non-exclusive technology licenses rather than purchasing Windsurf outright.
“We’re excited to welcome some top AI coding talent from Windsurf’s team to Google DeepMind to advance our work in agentic coding,” said Chris Pappas, Google spokesperson.
Google clarified that it will not take control of or own any stake in Windsurf itself.
Leadership Changes at Windsurf
With the departure of its cofounders, Windsurf has announced new leadership appointments:
- Jeff Wang, formerly Head of Business, becomes Interim CEO.
- Graham Moreno, VP of Global Sales, is now President.
Both executives will guide Windsurf through its next growth phase as an independent company.
Why the OpenAI Deal Fell Apart
OpenAI had been reported to be in talks to acquire Windsurf for approximately $3 billion. However, no further details were provided on why the deal was cancelled. This pivot suggests a strategic realignment for both OpenAI and Google in the AI coding and voice technology sector.
Google’s Focus on Gemini and AI Development
Google DeepMind’s acquisition of Windsurf talent comes as part of its broader investment in Gemini, a leading AI model for developers.
“Gemini is one of the best models available, and we’ve been investing in its advanced capabilities for developers,” said Pappas.
Windsurf’s Future and Google’s Strategy
While Google gains top AI talent and non-exclusive rights to Windsurf’s technology, Windsurf remains an independent company under new leadership.
Mohan and Chen shared their excitement:
“We are proud of what Windsurf has built over the last four years and are excited to see it move forward with their world-class team.”
Key Takeaways:
- OpenAI’s reported $3 billion acquisition of Windsurf is cancelled.
- Google DeepMind hires Windsurf’s CEO, cofounder, and R&D team.
- Focus: Advancing Google’s Gemini model through agentic coding.
- Windsurf continues as an independent firm with new leadership.
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