Google has made a big move by acquiring two top AI coding talents from WindSurf, a startup specializing in AI. It has invested $2.4 billion to hire the top talent of Windsurf, CEO Varun Mohan, and co-founder Douglas Chen. Moreover, it has previously tried to acquire major stakes in OpenAI with a potential investment of $3 billion, but it didn’t work out as planned. The deal never went to active status due to several complications posed by Microsoft Corporation.
The AI Tech company is investing in WindSurf and many other companies, thriving in AI coding talent to strengthen its DeepMind research unit. In addition, the company has rejected the claims, saying that it has taken a major stake in the startup, WindSurf. According to Google, WindSurf will continue to operate freely as it used to without Google’s interference.
WindSurf’s Deal with OpenAI
According to insiders, WindSurf was first offered for a deal by OpenAI, which was almost finalized for $3 billion. However, the company was invested in by Microsoft, which elevated tensions within the company. OpenAI wanted to acquire a major stake in WindSurf, which wasn’t favorable to Microsoft, as an investor. According to people, WindSurf never wanted Microsoft to access its intellectual property, which led to tension between the two companies.
OpenAI and Windsurf had almost finished their deal and were ready to announce it in May 2025 when this happened. In addition, the investors of WindSurf were sent waterfall agreements that explained the company’s functioning and expected monetary profits. However, WindSurf and OpenAI’s deal collapsed when Microsoft fueled tension in the deal’s arrangements.
WindSurf’s Deal with Google
Google has acquired two top talents from WindSurf, who will brainstorm ideas for Google’s DeepMind research. Meta acquired a majority stake in OpenAI to research and improve AI Technology. Therefore, to be a step ahead, Google is investing in talent globally, from AI startups to research on its projects, especially Gemini.
The investment in WindSurf was a strategic move by Google, as its last year’s profits were quite appealing. WindSurf has raised $243 million from many investors, such as Kleiner Perkins, Greenoaks, and General Catalyst, which has added to its net value. The previous year, WindSurf was valued at $1.25 billion, according to the statistics.
With such a growth-worthy company under the two top positions, Google found a scope in retaining them for its DeepMind research lab. However, as mentioned earlier, Google has just acquired two AI coders from the company, which is now operating under interim CEO Jeff Wang. Google has welcomed WindSurf’s two talents to DeepMind, who will contribute to the development of AI research in the center.
WindSurf’s two talents to contribute to Google’s DeepMind
According to the deal agreements, WindSurf has agreed to send its top two AI coding experts to Google. Moreover, the deal will not take away WindSurf’s independence to operate the company. The agreement prohibits Google from intervening in the company’s regular operations, but it has access to the key parts of its IP.
Under Google’s DeepMind, the two AI experts will be putting their combined efforts into Agentic Coding. Agenting Coding focuses more on the autonomous artificial intelligence and collaboration rather than autocomplete engines.
Other than that, this deal will strengthen Google’s roots in the tech market, while OpenAI is under a loss. After OpenAI’s deal with the AI tech startup, WindSurf, collapsed, Google finalized the agreement for $2.4 billion for a non-exclusive license. On the contrary, OpenAI’s major stake went into the hands of Meta for $14.3 billion. Thus, it looks like Google is thriving in comparison to OpenAI.
Another reason that Google is trying to excel in ‘Agentic coding’ is that Microsoft is using this technique. This technique enables the system to perform most of the tricky coding by itself. According to CEO Satya Nadella, Microsoft is writing 30% of its code through agentic coding, which has helped it in the long run.
Conclusion
Investment in WindSurf was a strategic move for Google, as it wants to improve its Gemini Project and application of Agentic coding. Other than that, Google has also invested in companies like Character.AI for the development of the Gemini Project. The interim CEO, Jeff Wang, mentioned on X that the top minds of startups have been pulled into an AI war by the tech giants.
There is a statement that says that “AI is taking over the world”, and I must say it’s true. All the tech giants are working on building an AI system, which will change the outlook of the world. Moreover, they aim to develop AI to a point where the major intelligent tasks of humans can be performed by it.
