OpenAI in talks to acquire AI coding tool Windsurf for $3 Billion!

OpenAI is in talks to pay about $3 billion to acquire Windsurf, an artificial intelligence tool for coding help, CNBC has confirmed.

Windsurf, formerly known as Codeium, competes with Cursor, another popular AI coding tool, as well as existing AI coding features from companies such as Microsoft, Anthropic and OpenAI itself.

Bloomberg was first to report on the potential deal, which CNBC confirmed with a person familiar with the matter who asked to remain anonymous since the talks are ongoing.

OpenAI is rushing to stay ahead in the generative AI race, where competitors including Google Anthropic and Elon Musk's xAI are investing heavily and regularly rolling out new products. Late last month, OpenAI closed a $40 billion funding round, the largest on record for a private tech company, at a $300 billion valuation.