Google hires key staff from AI start-up Windsurf for $2.4B
What's the story
Google has hired key staff members from artificial intelligence (AI) start-up Windsurf and secured a non-exclusive license for certain technologies for $2.4 billion in licensing fees and compensation. Windsurf's co-founder and CEO, Varun Mohan, will join Google's DeepMind division, with other senior employees. The acquisition comes after a failed attempt by OpenAI to acquire Windsurf in April, during which OpenAI and Windsurf had entered into exclusivity to finalize an acquisition, but the exclusivity period expired, leading to the deal's failure.
Tech integration
Google will not invest in Windsurf
Google will not invest in Windsurf but will secure a non-exclusive license for certain technologies developed by the start-up. This means while Google can use these technologies, Windsurf is free to license them out to other companies too. Mohan and his team will work on agentic coding projects at Google DeepMind, focusing mainly on the Gemini project. This comes as companies like Alphabet and Meta are aggressively pursuing high-profile acquisitions and offering multi-million-dollar pay packages to lure top AI talent.
Leadership changes
Leadership changes at Windsurf
Douglas Chen, a co-founder of Windsurf, is also set to join Google as part of the deal. Meanwhile, Jeff Wang, Windsurf's head of business for the last two years, has been named its interim CEO. Graham Moreno, the VP of global sales at Windsurf, will take over as president immediately. Despite Google's hiring of key personnel and securing a non-exclusive license for certain technologies, most of Windsurf's world-class team will continue to work on building the Windsurf product.
Scenario
Go-to platform for 'vibe coding'
Windsurf has gained traction this year as a go-to platform for "vibe coding," the process of using next-gen AI tools to write code. Both developers and non-developers have adopted the trend, boosting revenues for Windsurf and rivals like Cursor, which OpenAI also considered acquiring. All of this has led to increased investor interest, driving up start-up valuations.