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Google DeepMind Poaches Windsurf Leadership as OpenAI Deal Collapses

SILICON VALLEY, UNITED STATES, JUL 12 – Google DeepMind hired Windsurf CEO Varun Mohan and core R&D team under a $2.4 billion non-exclusive license deal after OpenAI's $3 billion acquisition attempt failed due to Microsoft objections.

  • Last Friday, OpenAI's $3 billion acquisition of Windsurf fell apart, prompting Google to hire Windsurf CEO Varun Mohan, co-founder Douglas Chen, and R&D staff to join DeepMind.
  • OpenAI’s acquisition exclusivity expired last month, ending talks with Windsurf as the startup remained in advanced negotiations until then.
  • Google pays $2.4 billion for a nonexclusive license from Windsurf, exemplifying a reverse-acquihire that keeps the startup independent and allows licensing to others.
  • Google’s hiring of Windsurf’s top talent boosts its Gemini project and intensifies the AI talent race among major tech firms.
  • This licensing-based deal reflects a broader industry trend, potentially attracting antitrust scrutiny as it allows talent access without full acquisitions.
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Fortune broke the news in New York, United States on Friday, July 11, 2025.
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