Overview

• OpenAI officially called off its planned $3 billion acquisition of Windsurf on July 11, ending months of negotiation over its largest potential deal to date.
• Google DeepMind hired Windsurf’s CEO Varun Mohan, co-founder Douglas Chen and select R&D staff under a reverse acquihire aimed at boosting its agentic coding efforts.
• The agreement grants Google a non-exclusive license to Windsurf’s AI coding platform without taking equity or operational control of the startup.
• Windsurf appointed Jeff Wang as interim CEO and Graham Moreno as president to steer the company through its post-deal transition.
• Most of Windsurf’s roughly 250 employees remain with the independent startup as it continues offering AI developer tools to enterprise customers.