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April 18, 2025

OpenAI pursued Cursor maker before entering into talks to buy Windsurf for $3B

When news broke that OpenAI was in talks to acquire AI coding company Windsurf for $3 billion, one of the first questions on the mind of anyone following the space was likely: “Why not buy Cursor creator Anysphere instead?”

After all, OpenAI Startup Fund has been an investor in Anysphere, the maker of Cursor, since the quickly-growing coding assistant’s seed round in late 2023.  (Anysphere is often referred to by its product name, Cursor.) It turns out that OpenAI indeed approached Anysphere in 2024 and again earlier this year about a potential acquisition,  according to a report from CNBC. The talks failed. Instead, Anysphere has been in talks to raise capital at about $10 billion valuation, Bloomberg reported last month.

OpenAI’s desire to move on to acquisition discussions with another coding assistant maker signals how important capturing a slice of the code generation market has become for the ChatGPT maker. Windsurf is generating about $40 million in annualized recurring revenue (ARR), TechCrunch reported in February. Meanwhile, Anysphere’s Cursor reportedly makes about $200 million on an ARR basis.

While OpenAI’s Codex CLI “agent,” which the company released Wednesday, can also write and edit code, its attempt to buy Windsurf suggests the company doesn’t want to wait for CLI to gain traction with customers.

Keep reading the article on Tech Crunch


April 16, 2025

OpenAI is reportedly in talks to buy Windsurf for $3B, with news expected later this week

Windsurf, the maker of a popular AI coding assistant, is in talks to be acquired by OpenAI for about $3 billion, Bloomberg reported.

If the deal happens, it would put OpenAI in direct competition with a number of other AI coding assistant providers, including Anysphere, the maker of Cursor, which OpenAI backed from its OpenAI Startup Fund.

The acquisition could jeopardize the credibility of the OpenAI Startup Fund, given that it is one of Cursor’s biggest investors, said a person familiar with Cursor’s cap table. It’s not clear whether OpenAI approached Cursor about an acquisition.

In addition to what sources told Bloomberg, there are a few more clues that something is going on between the two companies. A couple of days ago, Windsurf users received an email that said that because of an announcement later this week, they have the option to lock in access to the coding editor at $10 a month.

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And OpenAI chief product officer Kevin Weil also released a video yesterday praising Windsurf’s capabilities.  

Windsurf, the company formerly known as Codeium, has been in talks to raise fresh funds at a $2.85 billion valuation led by Kleiner Perkins, TechCrunch reported in February. The company has reached about $40 million in annualized recurring revenue (ARR), according to our reporting. That revenue run rate is much lower than Cursor’s, which reportedly makes $200 million on an ARR basis. Cursor has been in talks to raise capital at about $10 billion valuation, Bloomberg reported last month.

Since its founding in 2021 by Varun Mohan and his childhood friend and fellow MIT grad, Douglas Chen, Windsuf has previously raised $243 million from investors including Greenoaks Capital and General Catalyst, according to PitchBook data.

Additional reporting by Sarah Perez

Keep reading the article on Tech Crunch


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