OpenAI eyes $3 billion Windsurf deal: what’s next for AI coding tools?

OpenAI’s potential $3 billion acquisition of Windsurf, creator of Codeium, signals a major consolidation in AI code generation. This move follows Cursor’s $10 billion valuation and Microsoft’s $500 million GitHub Copilot revenue, highlighting rapid growth and fierce competition in AI-driven developer tools.

Sources:
Reuters
Updated 2h ago
Section 1 background
Well over 30% of Google’s code is now AI-generated, and last year the company had saved the equivalent of 4,500 developer-years by using AI.
Google CEO
Reuters
Key Facts
  • Microsoft launched GitHub Copilot in 2021, which has become the dominant player in AI code generation with over $500 million in revenue and 15 million users as of 2024.Reuters
  • Google revealed in April 2025 that more than 30% of its code is AI-generated, resulting in a saving of 4,500 developer-years last year.Reuters
  • Cursor, a San Francisco-based AI code generation startup, raised $900 million in May 2025 at a $10 billion valuation from leading tech investors including Thrive Capital, Andreessen Horowitz, and Accel.Reuters
  • OpenAI is in talks to acquire Windsurf, the Mountain View startup behind the AI coding tool Codeium, for $3 billion.Reuters
Key Stats at a Glance
Cursor funding amount
$900 million
Reuters
Cursor valuation
$10 billion
Reuters
OpenAI acquisition deal for Windsurf
$3 billion
Reuters
GitHub Copilot revenue
$500 million
GitHub Copilot users
15 million users
Percentage of AI-generated code at Google
30%
Developer-years saved by Google using AI
4,500 developer-years
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