OpenAI's attempt to acquire Windsurf, a viral AI coding startup, collapsed. Following this, Google DeepMind hired Windsurf's CEO Varun Mohan, co-founder Douglas Chen, and other key AI talent, however, Google will not acquire a stake in Windsurf. Instead, Google secured a nonexclusive license to specific Windsurf technology while allowing the startup to continue licensing its technology to others. This reverse-acquihire trend enables major tech firms to bolster their AI capabilities without facing regulatory concerns or outright acquisitions. Windsurf's head of business, Jeff Wang, will serve as interim CEO as the company retains most of its workforce.
"We are excited to be joining Google DeepMind along with some of the Windsurf team. 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 and kick-start the next phase."
"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 Google spokesperson Chris Pappas in an email.
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