Just In: Google DeepMind Snatches Windsurf’s Core Team After OpenAI’s Failed Acquisition}

While everyone is still marveling at the open-source Kimi K2 model from the Moon’s dark side, Google DeepMind announced it had poached Windsurf, which OpenAI had intended to acquire.

DeepMind CEO Demis Hassabis and CTO Koray Kavukcuoglu publicly welcomed Windsurf CEO Varun Mohan, co-founder Douglas Chen, and some team members who joined DeepMind, via X (Twitter).

In their announcement, DeepMind stated that Mohan and Windsurf’s team members will focus on the Gemini project, which involves AI programming agents and tool usage.

The Verge obtained a statement from Google spokesperson Chris Pappas: "Gemini is one of the best models currently, and we are investing in developing advanced developer features. We are very pleased to welcome top AI programming talent from Windsurf to accelerate our work on intelligent agents."

Windsurf CEO Varun Mohan and co-founder Douglas Chen also issued a statement: "We are excited to join Google DeepMind. We are proud of what Windsurf has achieved over the past four years and look forward to working with their world-class team to start a new chapter."

Details of the deal amount remain undisclosed. Reports suggest that OpenAI previously planned to acquire Windsurf for $3 billion.

So, what went wrong with the OpenAI-Windsurf deal?

According to Fortune, an OpenAI spokesperson said: "The exclusivity period for the $3 billion acquisition agreement with Windsurf expired in May, and Windsurf is now free to explore other options."

Founded in 2021 by MIT alumni, originally named Codeium, Windsurf rebranded earlier this year before the OpenAI deal was announced.

Before targeting Windsurf, OpenAI had also negotiated with Anysphere to acquire Cursor, but the deal fell through because Cursor was unwilling to be acquired, as reported by TechCrunch.

This news is a blow to OpenAI, adding to recent setbacks they’ve faced, as summarized by netizen @ns123abc on X, who highlighted multiple recent challenges for OpenAI.

This sudden news caused a stir across the AI and tech industries, with some joking that Windsurf engineers might be in a state of confusion.

Others believe that Google is a better fit for Windsurf than OpenAI.

However, choosing Google isn’t necessarily good for all Windsurf employees. Reports reveal that Google will not hold any control or equity in Windsurf but will license some of its technology non-exclusively.

This means Windsurf will continue operating as an independent startup, but key team members have already joined Google, leaving the original team and leadership behind.

Windsurf’s current CEO Jeff Wang and Vice President Graham Moreno have been appointed as interim CEO and President, respectively, effective immediately, and will lead the company forward.

Jeff Wang issued a statement on Windsurf’s official website and X, saying: "Most of Windsurf’s world-class team will continue to develop Windsurf products and help our clients maximize the use of this technology."

Yet, some developers express concern about Windsurf’s future after losing its core team, fearing instability and decline.

What are your thoughts on the fierce talent competition in the AI industry?

^References

^{https://windsurf.com/blog/windsurfs-next-stage}

^{https://x.com/jeffwsurf/status/1943805677270622570}

^{https://fortune.com/2025/07/11/the-exclusivity-on-openais-3-billion-acquisition-for-coding-startup-windsfurf-has-expired/}

^{https://www.theverge.com/openai/705999/google-windsurf-ceo-openai}

^{https://x.com/ns123abc/status/1943806065524507007}