Windsurf’s leadership has moved to Google following the collapse of OpenAI’s planned $3 billion acquisition of the AI coding startup. Windsurf CEO Varun Mohan, co-founder Douglas Chen, and several key members of the research and development team have joined Google’s DeepMind division to work on advanced AI coding projects, particularly focusing on Google’s Gemini initiative.
As part of the arrangement, Google is paying $2.4 billion in licensing fees for nonexclusive rights to use certain Windsurf technologies, but it has not acquired any ownership or controlling interest in Windsurf. The startup itself remains independent, with most of its approximately 250 employees staying on and Jeff Wang appointed as interim CEO to continue developing Windsurf’s enterprise AI coding solutions.
This deal represents a strategic “reverse acquihire” where Google gains top AI coding talent and technology licenses without fully acquiring the company, allowing Windsurf to maintain its autonomy and license its technology to others. The move comes after OpenAI’s acquisition talks fell through due to disagreements, including concerns about Microsoft’s access to Windsurf’s intellectual property.
The transition of Windsurf’s leadership to Google highlights the intense competition among AI companies to secure talent and technology in the rapidly evolving AI coding sector.