OpenAI’s Windsurf Deal Signals New Wave of AI Acquisitions
Private companies are joining tech giants in a growing trend of acquiring AI startups.
Major tech companies like Mastercard, Nvidia, and AMD made headlines last year by acquiring AI-focused startups. Now, newer and privately held players may be stepping into the spotlight.
Last week, reports surfaced that OpenAI is in talks to acquire Windsurf, a code-generation tool formerly known as Codeium, in a deal valued at around $3 billion. If completed, it would be OpenAI’s largest acquisition to date.
This potential deal follows a $40 billion investment OpenAI received in March, with support from backers such as SoftBank. OpenAI reportedly also considered buying Anysphere, the maker of the AI coding assistant Cursor, but those talks didn’t lead to a deal. Anysphere’s valuation is said to be nearing $10 billion.
Despite high operating costs, OpenAI has the funding needed to pursue major deals—and it’s not alone.
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More AI Investment Activity
OpenAI isn’t the only company spending big in the AI space. Last week, Anthropic joined a $50 million Series A funding round for Goodfire, a startup that helps businesses develop AI models. This marks Anthropic’s first direct investment in a startup outside its ties to Menlo Ventures.
Given that Anthropic has raised $4.5 billion this year, more acquisitions or investments are likely on the horizon.
Meanwhile, Elon Musk’s AI company, xAI, recently acquired X—the social platform he also owns—in an all-stock transaction valued at $33 billion. xAI has already raised $12 billion in 2024 and is reportedly seeking another $20 billion, suggesting more AI-related deals could follow.
Big Tech Still in the Game
Traditional tech giants aren’t stepping back. Just this week, Palo Alto Networks announced plans to acquire Protect AI, a company that focuses on securing AI applications. Though the purchase price wasn’t disclosed, Protect AI was last valued at $400 million in 2023.
These moves show that the race to build and control the future of AI isn’t just for public companies. Private firms like OpenAI, Anthropic, and xAI are becoming aggressive buyers, signaling a shift in how acquisitions are shaping the AI landscape.