
Google hires Windsurf AI talent in $2.4 billion licensing deal
12 Jul 2025, 12:27 PMThe acquisition marks a significant victory for Google over rival OpenAI, which previously held $3 billion acquisition talks with Windsurf.
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Google has secured key artificial intelligence talent from coding startup Windsurf in a $2.4 billion licensing arrangement.
The deal brings Windsurf's chief executive Varun Mohan and co-founder Douglas Chen to Google's DeepMind division, along with several other employees and licensing rights to the company's technology.
Google confirmed the arrangement does not involve taking an equity stake in Windsurf, reported Bloomberg.
The acquisition marks a significant victory for Google over rival OpenAI, which previously held $3 billion acquisition talks with Windsurf.
Microsoft's existing partnership agreement with OpenAI entitles the software company to access OpenAI's technology developments. However, Windsurf was reluctant to grant Microsoft similar rights to its proprietary systems -- that derailed the OpenAI transaction.
This somewhere represents broader tensions between OpenAI and Microsoft as the AI company seeks to restructure into a commercial entity while maintaining its relationship with its largest investor.
In similar agreements, Microsoft recently hired Inflection AI's leadership team and licensed its software last year, while Amazon hired executives from Adept AI Labs. Google previously secured Character.AI's co-founders.
Meta recently picked a 49% stake in AI data company Scale AI for more than $14 billion while hiring co-founder Alexandr Wang. The social media giant has subsequently recruited senior AI executives from Google, OpenAI and Apple, offering compensation packages exceeding $200 million for top talent.
Founded in 2021, Windsurf has raised over $200 million from investors including Greenoaks Capital Partners and AIX Ventures, according to PitchBook data.