ChatGPT Creators Outbid by Google, New Trend Emerges in the AI Wars

Jakarta, CNBC Indonesia –OpenAI’s plan to acquire AI-based coding startup Windsurf for US$3 billion has officially failed. Unexpectedly, Google DeepMind has outmaneuvered the ChatGPT creators by recruiting Windsurf’s founders.

Windsurf’s CEO and Co-Founders, Varun Mohan and Douglas Chen, along with several startup researchers at Windsurf have now joined Google.

Interestingly, Google is not taking a stake in Windsurf and will not have control over the company.

However, as part of the deal, Google is acquiring a non-exclusive license to some of Windsurf’s technology. This means Windsurf remains free to license its technology to others.

“We’re excited to welcome some of the best AI programming talent from the Windsurf team to Google DeepMind to drive progress in the development of agentic coding,” said Google spokesperson Chris Pappas in an email, as quoted by TechCrunch, Wednesday (July 16, 2025).

According to a Bloomberg report, Google paid US$2.4 billion to license Windsurf’s technology and recruit its top talent.

This deal reflects the latest trend in the AI world of “reverse acquihire,” where large companies recruit key talent from startups and license their technology without acquiring the company entirely.

Windsurf was previously a hot topic among AI giants. The startup quickly gained traction, reaching US$100 million in annual recurring revenue in just a matter of months. OpenAI, which had been pursuing the company for a while, was forced to bite the bullet after its exclusivity offer expired and Google immediately overtook it.

According to a Wall Street Journal report, OpenAI’s failed acquisition of Windsurf was also cited as a major source of tension in the contract renegotiation process between OpenAI and Microsoft.

Microsoft currently has access to all of OpenAI’s intellectual property, but OpenAI does not want its main backer to gain control of Windsurf’s AI programming technology.

Now, Windsurf must rethink its approach. The majority of the team, approximately 250 people, will remain and continue to serve enterprise clients. But without the founders, the future of this startup is full of big question marks.

SOURCE : CNBC INDONESIA