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Google to pay $2.4 billion in deal to license tech of Windsurf, WSJ reports

Google to pay $2.4 billion in deal to license tech of Windsurf, WSJ reports

CNAa day ago
Google has agreed to pay about $2.4 billion in a deal to license the technology of artificial intelligence-assisted coding tool Windsurf, The Wall Street Journal reported on Friday, citing people familiar with the matter.
Reuters could not immediately confirm the report.
Earlier on Friday, a Google spokesperson told Reuters that the company has hired Windsurf CEO Varun Mohan, co-founder Douglas Chen, and select members of the coding tool's research and development team to join its DeepMind division, in a move to strengthen itself in the race for AI leadership.
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Google Ropes-in Windsurf AI Talent on Board in $2.4 Billion Tech Licensing Deal Without Taking Ownership
Google Ropes-in Windsurf AI Talent on Board in $2.4 Billion Tech Licensing Deal Without Taking Ownership

International Business Times

time9 hours ago

  • International Business Times

Google Ropes-in Windsurf AI Talent on Board in $2.4 Billion Tech Licensing Deal Without Taking Ownership

The hiring spree of top talent among the tech giants is gaining momentum as companies leave no stone unturned in the race to further develop AI. Now, following from Meta, OpenAI, and Apple's efforts, it's the turn of Google to double down on AI code generation with hires of key thinkers integral to its mission. The tech giant has also hired some key people from the AI startup Windsurf, including CEO Varun Mohan and co-founder Douglas Chen. These leaders will collaborate with Google DeepMind in developing cutting-edge AI-driven coding through the Gemini project. Rather than acquiring Windsurf outright, Google will pay $2.4 billion in license fees to access its technology on a nonexclusive basis. Google will not take a stake or any controlling interest in the startup, sources informed TechCrunch. The move came after months of discussions between Windsurf and OpenAI, which had explored the possibility of buying the start-up in a deal that would have valued it at $3 billion. But that deal fell through, and then Google stepped in to secure Windsurf's advanced code-generation capabilities. The new hires will work on agentic coding, centered on AI systems that can write and improve code with little human help. This is a rapidly expanding territory and increasingly important for the big AI players. "We are thrilled to welcome a part of Windsurf's top AI coding talent to Google DeepMind, and we will be building on their work to bring about more progress in agentic coding," Google said in a statement. The licensing model allows Windsurf to remain an independent company. Its investors, which include Kleiner Perkins, Greenoaks, and General Catalyst, will be paid the license fee and retain their shares. Windsurf, which pulled in $243 million and was most recently valued at $1.25 billion, is now looking to turn its attention to its corporate customers. New Leadership Jeff Wang has been appointed interim CEO of Windsurf, and Graham Moreno will serve as president. Most of its 250 employees will stay on and continue innovating, the company said. This isn't the first move of this kind for Google. In August 2024, it recruited Character's key staff. AI without a full acquisition. Other tech giants, including Microsoft, Amazon, and Meta, are deploying similar strategies—often known as "acquihires"—to "bring on board top AI talent while circumventing regulatory entanglements associated with traditional buyouts. Experts warn that the perception of such agreements as ways to circumvent antitrust rules could trigger regulatory scrutiny.

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