Google Strikes $2.4 Billion Deal With AI Startup Windsurf To Boost Coding Ambitions

Google has entered a $2.4 billion deal with AI startup Windsurf to license its advanced coding technology. This partnership aims to enhance Google's agentic coding ambitions, particularly with its Gemini initiative. Several Windsurf executives, including CEO Varun Mohan, will join Google’s DeepMind division. The deal also reflects the growing trend of "acquihire" in the tech industry.

Add NewsX As A Trusted Source
Add as a preferred
source on Google
Published by Ankur Mishra
Published: July 12, 2025 18:52:55 IST

Google has entered into a $2.4 billion deal with Windsurf, which is the world’s most advanced AI coding assistant for developers and enterprises. The deal includes licensing fees but does not involve a controlling stake in Windsurf.

This comes after months of struggles with Google’s Gemini in competition with OpenAI. Under this deal, Google will license technology from Windsurf’s AI coding platform. Through this partnership, Google aims to accelerate its ambitions in agentic coding and artificial intelligence.

Google Expands AI Workforce with Windsurf Talent

Several members of Windsurf’s research and development team will join Google’s DeepMind division. As part of this agreement, Google will gain access to Windsurf’s technology and hire its key executives, including CEO Varun Mohan and co-founder Douglas Chen. 

Their primary focus will be advancing projects related to agentic coding, particularly the Gemini initiative. The deal also provides liquidity to Windsurf’s investors while allowing them to retain stakes in the company.

The deal reflects the growing demand for AI-driven coding tools, which have become a key area of focus for major tech companies.

Google-Windsurf’s Deal: A Growing Trend in the Tech Industry

This deal follows a trend in the tech industry where companies obtain talent and technology without having full control over the company. Microsoft, Amazon, and Meta have entered similar deals in the past. It encourages a new approach to attract top talent without triggering antitrust reviews.

Although these deals don’t require regulatory approval, they have drawn attention from U.S. antitrust regulators, who are increasingly scrutinizing such agreements for potential competition concerns.

Windsurf’s new CEO, Jeff Wang, will manage the company as it continues to focus on innovation and enterprise solutions. Additionally, the majority of its employees will remain with the company.

Also Read: Google Gemini Pro Subscribers Can Now Convert Photo-to-Video

Published by Ankur Mishra
Published: July 12, 2025 18:52:55 IST

Recent Posts

FIFA World Cup Draw 2026 Live Streaming: When, Where and How to Watch Draw Live Telecast on TV, Mobile Apps Online In India

India will see the 2026 FIFA World Cup draw streamed live through the FIFA+ platform…

December 5, 2025

Will Nitish Kumar’s Son Nishant Kumar Finally Enter Politics? Bihar CM’s Son Drops A Big Hint

Speculation over Bihar CM Nitish Kumar’s son Nishant Kumar entering politics grew after JD(U) leader…

December 5, 2025

Netflix to Buy Warner Bros in Historic $72 Billion Takeover, This Is How The Streaming Giant Won The Bid

Netflix has sealed a $72 billion deal to acquire Warner Bros Discovery’s TV and film…

December 5, 2025