Google pays $2.4 Bn to License Tech of Windsurf | Another Acquihire Chapter in the AI Talent Wars

Google has agreed to pay approximately $2.4 billion to license technology from AI coding startup Windsurf and hire its CEO along with a small number of employees. The deal, structured as a non-exclusive licensing agreement rather than an acquisition, follows the collapse of earlier talks for OpenAI to acquire Windsurf for $3 billion. That deal fell apart due to Microsoft—OpenAI’s largest investor—objecting to terms that would have denied it access to Windsurf’s IP.

The move highlights growing tensions between OpenAI and Microsoft and underscores the intensifying competition among tech giants to secure top AI talent through acquihire-style deals. Most Windsurf employees will remain at the startup, while the new Google hires will join DeepMind to work on agentic coding tools.

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