OpenAI has agreed to acquire AI based coding tool Windsurf for around $3 billion, according to a Bloomberg report. The ancquisition of Windsurf (formerly called Codeium) is currently not closed and if completed would be the largest ever by the ChatGPT maker.
Prior to the OpenAI, Windsurf was reportedly in talks with other investors like Kleiner Perkins and General Catalyst to raise funding at a $3 billion valuation. Meanwhile, generative AI based startup was valued at $1.25 billion in a deal led by General Catalyst last year.
OpenAI rivals like Anthropic and Microsoft’s Github already offer AI based coding tools for programmers and the Windsurf acquisition could help the company deliver a similar product. The new crop of AI based tools allow users to write code based on text prompts in natural language, allowing developers to write code faster, fix bugs and helping debug complex logic.
OpenAI had recently received a $40 billion financing from Japan’s SoftBank which values the company at $300 billion.
OpenAI keeps control with non-profit arm:
In other related news, OpenAI on Monday announced that it was walking back on the plan to restructure the organization to remove control from the non-profit arm. Under the new structure, OpenAI’s for-profit unit will be split into a Public Benefit Corporation (PBC) but the non-profit entitiy will be a big stakeholder and continue to retain control.
“Our for-profit LLC, which has been under the nonprofit since 2019, will transition to a Public Benefit Corporation (PBC)–a purpose-driven company structure that has to consider the interests of both shareholders and the mission.” OpenAI CEO Sam Altman said in a blogpost.
“Instead of our current complex capped-profit structure—which made sense when it looked like there might be one dominant AGI effort but doesn’t in a world of many great AGI companies—we are moving to a normal capital structure where everyone has stock. This is not a sale, but a change of structure to something simpler.” he added.
