Target: AI Coding Startup
OpenAI's Acquisition Falls Through
Google Seizes the Opportunity Without Equity Purchase
OpenAI, the developer of ChatGPT, has effectively lost the AI coding startup Windsurf to Google. Instead of acquiring an equity stake, Google reportedly chose to bring on board the CEO and key talent from Windsurf.
On July 11 (local time), the IT-focused media outlet The Verge reported that OpenAI's exclusive negotiation period for acquiring Windsurf had recently ended, and that Google had recruited Windsurf's CEO and key engineers. Windsurf is a software development company that leverages AI to assist developers with coding, and OpenAI had been pursuing its acquisition for approximately $3 billion (4.1 trillion won).
The reasons for the failed acquisition have not been disclosed. However, some observers suggest that recent instability in the partnership between OpenAI and its largest investor, Microsoft (MS), may have contributed to the collapse of the deal. The Wall Street Journal previously reported that while MS currently has access to all of OpenAI's intellectual property (IP), OpenAI did not want MS to also obtain Windsurf's AI coding technology.
Taking advantage of the failed acquisition, Google has effectively taken over Windsurf by hiring Windsurf CEO Varun Mohan, co-founder Douglas Chen, and key researchers. Google stated, "We are very pleased that Windsurf's top AI coding talent is joining Google DeepMind," and added, "We expect them to further advance our agent-based coding research."
Mohan and Chen also commented, "We are joining Google DeepMind along with some members of the Windsurf team," and added, "We are proud of what Windsurf has accomplished over the past four years and look forward to starting the next chapter with a world-class team."
Google did not acquire an equity stake in Windsurf or take control of the company, but secured licenses for some of Windsurf's technology. Windsurf will also be able to freely license its technology to companies other than Google. Most of the approximately 250 employees will remain, and Windsurf plans to continue providing AI coding tool services to enterprise clients.
Regarding Google's approach, the Wall Street Journal assessed that it demonstrates a strategy focused on acquihire?recruiting talent and licensing technology rather than acquiring equity stakes?in order to secure top AI talent and technology.
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