OpenAI is in talks to buy AI-powered coding tool Windsurf (formerly Codeium) for a whopping $3 billion USD ($4.13 billion CAD), according to a report from Bloomberg.
The ChatGPT creator has agreed to buy out Windsurf, but the deal is yet to close, per sources with knowledge of the discussions.
Windsurf had recently been seeking funding at a $3 billion valuation, talking to existing investors like General Catalyst and Kleiner Perkins. The startup was valued at $1.25 billion USD ($1.72 billion CAD) last year as it closed a $150 million USD ($206.3 million CAD) funding round led by General Catalyst in August.
Since ChatGPT’s meteoric rise, OpenAI has made several acquisitions to bolster various aspects of its AI products as competition in the space mounts. Buying Windsurf would allow OpenAI to beef up ChatGPT’s coding capabilities.
The deal, provided it goes through, would represent the AI giant’s largest purchase to date. OpenAI recently even expressed interest in buying Chrome if Google is forced to sell the browser due to antitrust concerns.
The news comes as OpenAI aims to restructure into a for-profit organization this year. Back in February, OpenAI announced a $40 billion USD ($55 billion CAD) funding deal that valued the company at a staggering $300 billion USD ($412.6 billion CAD).