Google DeepMind Snags Windsurf CEO After OpenAI Deal Fails
Alphabet has swooped in to acquire top talent and key licensing rights from artificial intelligence startup Windsurf, directly hiring its CEO and co-founder for its DeepMind unit. This move comes shortly after Windsurf's planned $3 billion acquisition by OpenAI spectacularly collapsed.
According to a Bloomberg report confirmed by Google, Alphabet will not take an equity stake in Windsurf itself. Instead, the tech giant has hired Windsurf's CEO Varun Mohan and co-founder Douglas Chen, along with other key personnel, to join Google DeepMind. The deal also includes licensing rights to Windsurf's AI technology.
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The hiring spree follows the dramatic implosion of Windsurf's previously agreed-upon $3 billion acquisition by OpenAI. That deal reportedly fell apart due to escalating tensions between OpenAI and its largest investor, Microsoft. A major sticking point was OpenAI's reluctance for Microsoft to gain access to Windsurf's intellectual property, especially as OpenAI restructured towards a more commercial model. Existing agreements entitle Microsoft to utilize OpenAI's technology.
An OpenAI spokesperson confirmed to Bloomberg that the exclusivity period for their acquisition offer had expired, freeing Windsurf to pursue other options. This opened the door for Google's talent-focused deal.
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Chris Pappas, a Google spokesperson, confirmed the hires to The Verge, stating: “Gemini is one of the best models available and we’ve been investing in its advanced capabilities for developers. We’re excited to welcome some top AI coding talent from Windsurf’s team to Google DeepMind to advance our work in agentic coding.”
Varun Mohan and Douglas Chen expressed pride in Windsurf's achievements in a statement: “We are proud of what Windsurf has built over the last four years and are excited to see it move forward with their world class team and kick-start the next phase.”
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The failed OpenAI acquisition and subsequent talent grab by Google DeepMind underscore the intense competition and complex relationships within the high-stakes AI industry. Google strengthens its DeepMind unit with proven AI coding talent, while Windsurf pivots its future after a major deal dissolved over conflicts between its would-be acquirer and its biggest backer.
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