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OpenAI Plans to Buy Coding Startup Windsurf for $3 Billion

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OpenAI, the company behind ChatGPT, is planning to buy Windsurf, an AI coding tool, for about $3 billion. Windsurf used to be called Codeium.

This would be OpenAI’s biggest purchase so far, but the deal is not final yet. Both OpenAI and Windsurf have not officially commented.

Buying Windsurf could help OpenAI become stronger in the growing market for AI coding tools. These tools help developers write and fix code faster using artificial intelligence.

OpenAI recently raised $40 billion in funding, bringing its value to $300 billion. The market for AI coding tools is growing fast. In 2023, it was worth just $18.6 million but is expected to grow by 25.8% each year until 2030. Bigger AI coding tools market is also growing—from $4.3 billion in 2023 to $12.6 billion by 2028.

Other big tech companies like Microsoft (with GitHub Copilot), Amazon, IBM, and Google are also investing heavily in AI tools for developers.

AI coding tools are popular because they help developers save time by generating code, fixing bugs, and making software run better.

OpenAI started in 2015 as a non-profit focused on safe AI. But in 2019, it changed to a “capped-profit” model to attract investors. Microsoft was one of the first big investors, giving $1 billion.

Now, with its latest funding and possible Windsurf deal, OpenAI is working to grow beyond chatbots and build more tools for developers. Even though it’s expected to make $12.7 billion in revenue by 2025, its costs could go over $28 billion, which is why it’s pushing hard to grow its business.

Source: techinasia