Zacks Investment Ideas feature highlights: Alphabet, Meta Platforms, Tesla, Apple and Microsoft
Chicago, IL – July 17, 2025– Today, Zacks Investment Ideas feature highlights Alphabet GOOGL, Meta Platforms META, Tesla TSLA, Apple AAPL and Microsoft MSFT.
Google Goes Windsurfing in the AI War for Talent
In a very agile, clever, and surprising move, Google's parent company Alphabet swept into the debris of OpenAI's bid for the AI coding startup Windsurf and came out with the latest and greatest of prize possessions: top talent.
On Friday, I had just profiled "Zuck the Poacher" in my weekly dive into all-things AI about the Meta Platforms CEO's aggressive strategy of buying, bribing, and stealing AI talent anywhere he could.
Just when we thought the primary battle was between Tesla 's Elon Musk and OpenAI's Sam Altman, Mark Zuckerberg not only has been poaching talent from competitors, he also made the first big "acquisition-hire" of the talent wars with the purchase of 49% of private Scale AI for $14.3 billion, as discussed here...
The Week in AI: "All incumbents are gonna get nuked."
Also on Friday, I did an interview with Bloomberg about how Apple 's Tim Cook should be following a similar strategy as Zuck...
Apple: Investors Call for Big AI Acquisition As Shares Slump
Hours later the story was breaking that Google pulled off their legal "coup."
Goliath Outwits David: How Google Navigated the Windsurf Win
Windsurf, an AI-native coding platform known for its leading edge in code generation and "agentic coding," became one of the most coveted startups in the race to build advanced developer AI tools. Its flagship products -- like Windsurf Editor -- were adopted by over a million developers and major enterprises, with annual recurring revenue surging from $40 million to $100 million.
OpenAI initially entered talks to acquire Windsurf for around $3 billion. However, the deal stalled due to concerns from OpenAI's top financial backer, Microsoft, whose broad IP-sharing agreement would have given it access to Windsurf's technology -- a potential threat given Microsoft's investment in competing products like GitHub Copilot.
As the drama ensued, Alphabet stepped in and struck a deal to hire Windsurf's founder and CEO, Varun Mohan, along with other key research and development team members, to join Google's DeepMind AI division. This deal also included a non-exclusive license for Google to use certain Windsurf technologies. According to CNBC, Google paid $2.4 billion as part of this arrangement.
Inherit the Windsurf
However, the story didn't end there. Just days after the deal with Google, Cognition AI, the company behind the AI coding agent Devin, announced that they had acquired the remainder of Windsurf. This acquisition included Windsurf's intellectual property, product, brand, and the rest of its employees.
Essentially, Google secured key talent and a non-exclusive license to some technology, while Cognition AI acquired the company's core assets and the majority of its team. This series of events highlights the intense competition for talent and technology in the rapidly evolving AI coding space.
When I first heard this story, I thought "Wow, it's almost like Cognition was a young step-child heir who accidentally benefited from a divorce." That's no slight to the Cognition team, since I know nothing about them.
I'm just a student of inheritance, both financial and genetic, and so I cannot resist the opportunity to mention that this week marks the 100th anniversary of the infamous Scopes "Monkey" Trial in Dayton, Tennessee.
According to paleoanthropologist John Hawks, "The 1925 'trial of the century' featured a real showdown: a final cross-examination of William Jennings Bryan by counsel for the defense Clarence Darrow."
I saw Hawks speak in November at a human evolution event after having read his 2017 book with colleague Lee Berger Almost Human: The Astonishing Tale of Homo naledi and the Discovery That Changed Our Human Story.
Hawks will be participating next week in the events marking the centennial of the trial in Dayton and he just published an essay with his observations about science then and now -- "the good, the bad, and the fake" as he writes.
I responded to him on X about his announcement...
"I recently watched both versions of Inherit the Wind (1960 with Spencer Tracey and 1999 w Jack Lemmon) and was in awe of just how good that screenplay is. Such a great microcosm of society, politics, and religion."
Hawks replied...
"You're so right. One of the neatest things is that the climactic cross-examination of Bryan by Darrow really happened, and the screenplay is remarkably like the trial transcript."
I highly suggest watching either film, or both, this weekend. You will not be disappointed in the performances or the screenplay.
How Google Won the Deal: Key Strategy & Tactics
Okay, let's get back to the deal of the month in AI because it highlights the "war" going on during the early stages of the gen-AI and agentic-AI goldrush. Here are three "killer" moves by the old, but not tired, Goliath of the web.
1. Non-Acquisition "Acqui-hire" Strategy
Structure: Rather than pursuing a full buyout, Google offered about $2.4 billion for a non-exclusive technology license and to hire key talent—including Windsurf CEO Varun Mohan, co-founder Douglas Chen, and several senior R&D staff. The majority of Windsurf's team remained independent, and Windsurf retained the right to license its technology to other firms.
Speed & Timing: Once the OpenAI talks collapsed, Google moved rapidly. Within hours of OpenAI officially ending its exclusivity window, Google announced the agreement, effectively outmaneuvering its rivals.
2. Focused on Talent and Technology
Leadership Acquisition: Google's DeepMind gained Windsurf's core technical leadership, who will focus on advancing agentic coding for the Gemini AI project—enabling AI systems that not only generate, but autonomously manage and improve, complex software.
Technology Licensing: By securing a non-exclusive license, Google gains immediate and deep integration of Windsurf's proprietary AI coding tech into its Gemini and DeepMind platforms, accelerating internal innovation while avoiding regulatory scrutiny that a full acquisition might have invoked.
3. Capitalizing on Competitor Disarray
OpenAI's Stumbling Block: IP access requirements demanded by Microsoft—OpenAI's largest backer—created internal friction and "deal fatigue," which led Windsurf to reject OpenAI's overtures. This made Google's less-intrusive, rapid approach more attractive to Windsurf's executives.
Neutralizing Microsoft: By structuring the agreement as a talent and license deal, Google sidestepped IP clauses that could have benefitted Microsoft, keeping its competitive advantage intact.
Big Benefits for Brin & Co.
I've been talking a lot lately about an interview I saw with Google co-founder Sergey Brin and DeepMind founder Demis Hassibas. Brin essentially said that he came out of retirement to work at Google with Hassibas because he thought it was the most exciting time ever to be a computer scientist and he couldn't imagine any missing this opportunity.
He also said, with conviction, that Gemini will be the first to AGI (artificial general intelligence), where the model can perform all human intelligence tasks.
So what did they gain with the Windsurf win?
The Windsurf acquisition was a strategic win for Google's AI ambitions because it allowed the company to rapidly strengthen its leadership in next-generation AI-powered coding tools and agentic AI systems
Securing key individuals and technologically advanced code-generation capabilities positions Google as a leader in the next wave of AI for software development and agentic AI experiences.
The non-exclusive license avoids excessive regulatory scrutiny and allows both Google and Windsurf to benefit from continued innovation and commercial partnerships.
And for investors and analysts I think it adds renewed confidence to the "innovation commitment" for a company that needs to evolve beyond reliance on search-based advertising.
Bottom line: This deal demonstrates the new reality of AI M&A strategy, where talent and rapid execution can matter just as much as traditional acquisitions in shaping the future of advanced technology platforms.
BREAKING: As I write and we look forward to Alphabet's quarterly report in one week -- where we hope to learn more about leveraging the Windsurf "acqui-hire" -- the Goliath just announced $25 billion in additional investment in AI datacenters with a focus on energy infrastructure.
Kevin Cook is a Senior Stock Strategist at Zacks Investment Research where he runs the TAZR Trader portfolio service and keeps his eyes on all-things AI in his multimedia program The Week In AI.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners Up
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Zacks' Research Chief Picks Stock Most Likely to "At Least Double"
Our experts have revealed their Top 5 recommendations with money-doubling potential – and Director of Research Sheraz Mian believes one is superior to the others. Of course, all our picks aren't winners but this one could far surpass earlier recommendations like Hims & Hers Health, which shot up +209%.
See Our Top Stock to Double (Plus 4 Runners Up) >>
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