Google reportedly signs $2.4B deal with Windsurf

Google struck a $2.4 billion deal to license tech from AI coding startup Windsurf and hire its CEO and select staff, according to the Wall Street Journal.

The tech giant won’t have a stake in Windsurf, and most of the startup’s employees will remain there. The agreement comes after OpenAI’s $3B acquisition attempt for Windsurf stalled due to pushback from the ChatGPT firm’s largest investor, Microsoft.

The move is another “acquihire” trend happening in Silicon Valley, where companies avoid antitrust alarms by making high-priced deals with companies they want. Google did a similar $2.7 billion agreement with Character.AI.