The global AI race meets Indian talent as OpenAI negotiates to acquire Windsurf, the AI coding tool co-founded by Indian-origin entrepreneur Varun Mohan, for a staggering $3 billion.

What is the news?

  • OpenAI is in talks to acquire Windsurf (formerly Codeium), an AI-powered coding assistance tool, for approximately $3 billion as confirmed by CNBC.
  • This would mark OpenAI’s largest acquisition to date, following previous smaller purchases like Rockset, Multi, and Global Illumination.

Why is it interesting?

  • This potential acquisition highlights how Indian-origin entrepreneurs are crafting cutting-edge AI tools that attract attention from tech giants. Varun Mohan’s leadership has positioned Windsurf as a formidable competitor in the “vibe code” space alongside Cursor and Replit. 
  • Indian origin talent isn’t just contributing to the global AI landscape but is actively shaping it. With Windsurf previously valued at $2.85 billion, this deal exemplifies how technical expertise from the Indian diaspora can create massive value in frontier technologies.