OpenAI refuses to buy Windsurf, key employees move to Google

The deal for OpenAI to acquire startup Windsurf did not go through. Instead, Windsurf CEO Varun Mohan, co-founder Douglas Chen, and part of the development team are moving to Google DeepMind to work on the Gemini project.
The Windsurf team will strengthen the direction of Gemini at Google
Google and Windsurf announced that OpenAI has abandoned its planned deal to buy startup Windsurf, previously valued at $3 billion. Instead, Google is hiring key people from the company, including CEO Varun Mohan and co-founder Douglas Chen, as well as part of the research and development team. The new hires will join Google’s DeepMind division.
The team will focus on developing agent programming technologies and will primarily develop the capabilities of the Gemini language model. Google will not take control of Windsurf or become a shareholder, but will receive a non-exclusive license to some of its technology.
The team will focus on developing agent programming technologies and will mainly focus on developing the capabilities of the Gemini language model.
“Gemini is one of the best models available, and we’re investing in its advanced developer capabilities,” said Google spokesperson Chris Pappas in comments to The Verge. “We’re excited to welcome leading AI coding experts from the Windsurf team to Google DeepMind to develop our agent programming solutions.”
The new Windsurf leadership will continue to work independently
Windsurf’s management team has announced a reshuffle amid personnel changes, with Jeff Wang, head of the company’s business unit, becoming acting CEO and Graham Moreno, vice president of global sales, named as the new president.
“We are excited to join Google DeepMind along with part of the Windsurf team. We’re proud of what we’ve accomplished over the past four years, and are excited about the next phase of growth to begin with the strong team we have left in the company.”
Financial details of the transition were not disclosed
Google is not specifying terms and amounts related to the Windsurf team’s transition. OpenAI previously valued the deal to buy the startup at $3 billion, but the current format of the agreement between Google and Windsurf does not involve a transfer of assets or stakes, being limited to technology licensing and employee employment.
The agreement is not expected to include a transfer of assets or stakes, however.
The story OpenAI declines to buy Windsurf, key employees move to Google was first published on ITZine.ru.