OpenAI acquires AI coding startup Windsurf for $3 billion—its biggest deal yet, Bloomberg reports

OpenAI just made its biggest move yet—acquiring AI coding startup Windsurf in a serious push into developer tools. According to Bloomberg, the ChatGPT maker has reached an agreement to buy Windsurf, formerly known as Codeium, in a deal valued at around $3 billion.

The report added that the acquisition hasn’t closed yet, but if finalized, it would mark OpenAI’s largest to date.

“OpenAI has agreed to buy Windsurf, an artificial intelligence-assisted coding tool formerly known as Codeium, for about $3 billion, according to people familiar with the matter, marking the ChatGPT maker’s largest acquisition to date,” Bloomberg reported.

Windsurf had been in funding talks with top-tier investors, including General Catalyst and Kleiner Perkins, reportedly aiming for a $3 billion valuation—the same figure OpenAI is now paying. Last August, the startup was valued at $1.25 billion following a $150 million funding round led by General Catalyst, with Kleiner Perkins and Greenoaks also backing the company.

The deal makes a lot of sense. OpenAI has been steadily improving the coding skills of ChatGPT with each new model, and Windsurf’s tools could help it raise the bar even further—especially as competition with GitHub Copilot heats up.

The news of the acquisition comes a few days after Apple teamed up with Amazon-backed startup Anthropic to build an AI-powered ‘vibe-coding’ platform. Vibe coding is a method where developers describe what they want, and AI generates the code. It’s catching on quickly as tech firms look to streamline software development and reduce engineering bottlenecks.

The space is currently led by nimble AI startups like Windsurf, Replit, Cursor, Bolt, and Lovable. These tools let developers build apps using natural language, skipping much of the traditional coding process. While big tech firms are catching on, startups are still driving the innovation.

Meanwhile, this is not the first time OpenAI has used acquisitions to boost its capabilities. Last year, it bought database analytics company Rockset in a stock deal worth nine figures. That move was aimed at giving OpenAI better infrastructure for its enterprise offerings.

OpenAI’s growth has been explosive. The company’s weekly active users passed 400 million in February, up from 300 million just two months prior. Now, it’s reportedly raising up to $40 billion in a new round led by SoftBank, valuing the company at $300 billion.

Buying Windsurf adds fuel to that momentum and signals that OpenAI isn’t just improving what it already has—it’s out to dominate AI coding.