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Google to Pay $2.4 Billion in Deal to License Tech of Coding Startup, Hire CEO

UNITED STATES, JUL 12 – Google licenses AI coding tech from Windsurf and hires CEO Varun Mohan with other senior staff to enhance its Gemini project amid intense AI talent competition.

  • On Friday, Google announced a deal to license technology from AI coding startup Windsurf and hire its CEO Varun Mohan along with other key team members.
  • This agreement followed the expiration of a $3 billion acquisition offer from OpenAI, which had been negotiating with Windsurf since April but ultimately called off the deal.
  • Windsurf, launched in 2021 by a group of MIT alumni and previously known as Codeium, has grown to a team of 250 focused on developing AI tools for programmers and plans to operate independently moving forward.
  • A Google spokesperson expressed enthusiasm about bringing key AI developers from Windsurf into Google DeepMind to help progress their efforts in agentic coding.
  • The deal represents a reverse-acquihire where Google gains talent and licenses technology nonexclusively, while Windsurf retains freedom to license elsewhere and continue developing its product.
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NBC New York broke the news in New York, United States on Friday, July 11, 2025.
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