Google (GOOGL, Financials) just made one of its most interesting moves yet in the AI arms race; the company isn’t buying Windsurfbut it’s paying a hefty $2.4 billion to license its tech and absorb the talent behind it. This isn’t your standard acquisition; this is a deliberate, strategic play to capture the brains, not the balance sheet.
Windsurf’s CEO Varun Mohan, co-founder Douglas Chen, and several top engineers are heading to Google DeepMind; their mission: help power Gemini, Google’s bold new agentic coding initiative. And while Windsurf will continue as a companywith Jeff Wang now interim CEO and Graham Moreno as presidentthere’s no mistaking where the spotlight is.
The deal came after months of chatter; OpenAI was circling Windsurf with a potential $3 billion buyout earlier this yearbut Google moved quicker; and smarter. By keeping the structure non-exclusive and avoiding an ownership stake, Google dodges antitrust reviews; Windsurf’s investors cash in without cashing out entirely; and the core team gets to work at one of the most advanced AI labs in the world.
It’s part of a growing trend; Microsoft, Meta, Amazonall are doing acquihire-style deals to scoop up AI talent without triggering regulators. Google’s move? It’s sharp; it’s surgical; and it sends a clear message: in the next wave of AI, owning the code mattersbut owning the coders matters more.
This article first appeared on GuruFocus.