Google secures Windsurf talent in $2.4bn AI technology deal

Google has entered into a licensing deal, reportedly worth $2.4bn, with Windsurf in a move to bolster its AI development capabilities without acquiring ownership or control.

Windsurf is a California-based AI code generation company.

Though non-exclusive, the agreement permits Google to leverage specific Windsurf technologies, furthering its ambitions within the AI coding sector.

Several key figures from Windsurf, including CEO Varun Mohan and co-founder Douglas Chen, will transition to Google's DeepMind division. Their focus will be on agentic coding initiatives such as the Gemini project.

Google stated: "We're excited to welcome some top AI coding talent from Windsurf's team to Google DeepMind to advance our work in agentic coding."

This arrangement overrides earlier negotiations between Windsurf and OpenAI, during which the ChatGPT maker considered acquiring the former for $3bn. Windsurf investors, which include Kleiner Perkins, General Catalyst, and Greenoaks are expected to benefit from the license fees while maintaining their current stakes in the company.

Interim leadership for Windsurf will consist of Jeff Wang as CEO and Graham Moreno as president. The majority of Windsurf's workforce will remain with the company as it continues focusing on enterprise-level innovation.

This transaction reflects Google's pattern of acquiring talent through licensing arrangements instead of outright acquisitions, reported Reuters. This approach could potentially circumvent the regulatory scrutiny associated with traditional mergers and acquisitions.

Similar strategies have been employed by other tech giants such as Microsoft and Amazon. These companies have also engaged in acqui-hire deals to strengthen their AI capabilities.

Recently, Windsurf formed a partnership with AHEAD, a provider of cloud, data, and modernisation solutions, to support enterprise clients through various services linked to the former’s platform.

Prior to that, in May 2025, Windsurf launched its SWE-1 family of AI models aimed at expediting software engineering processes beyond just code generation. This product signals Windsurf’s entry into frontier model development, positioning it competitively against foundational models in software-related tasks.

"Google secures Windsurf talent in $2.4bn AI technology deal" was originally created and published by Verdict, a GlobalData owned brand.

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