Google Secures $2.4 Billion Deal for Windsurf's AI Coding Technology and Key Talent
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Google to pay $2.4 billion in deal to license tech of Windsurf, WSJ reports
July 11 (Reuters) - Google (GOOGL.O), opens new tab has agreed to pay about $2.4 billion in a deal to license the technology of artificial intelligence-assisted coding tool Windsurf, The Wall Street Journal reported on Friday, citing people familiar with the matter. Reuters could not immediately confirm the report. Earlier on Friday, a Google spokesperson told Reuters that the company has hired Windsurf CEO Varun Mohan, co-founder Douglas Chen, and select members of the coding tool's research and development team to join its DeepMind division, in a move to strengthen itself in the race for AI leadership. Reporting by Anusha Shah in Bengaluru; Editing by Muralikumar Anantharaman Our Standards: The Thomson Reuters Trust Principles., opens new tab Suggested Topics:Artificial Intelligence
[2]
Google to pay $2.4 billion in deal to license tech of Windsurf: Report - The Economic Times
Earlier on Friday, a Google spokesperson told Reuters that the company has hired Windsurf CEO Varun Mohan, co-founder Douglas Chen, and select members of the coding tool's research and development team to join its DeepMind division, in a move to strengthen itself in the race for AI leadership.-Google has agreed to pay about $2.4 billion in a deal to license the technology of artificial intelligence-assisted coding tool Windsurf, The Wall Street Journal reported on Friday, citing people familiar with the matter. Reuters could not immediately confirm the report. Earlier on Friday, a Google spokesperson told Reuters that the company has hired Windsurf CEO Varun Mohan, co-founder Douglas Chen, and select members of the coding tool's research and development team to join its DeepMind division, in a move to strengthen itself in the race for AI leadership.
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Google Beats OpenAI, Secures Windsurf Technology, CEO And Key Staff For $2.4 Billion - Alphabet (NASDAQ:GOOG), Alphabet (NASDAQ:GOOGL)
Alphabet Inc.'s GOOG GOOGL Google has finalized a $2.4 billion agreement to license technology from AI coding startup Windsurf. This deal also includes hiring Windsurf's CEO and a select group of its employees. What Happened: Google has reached a $2.4 billion deal with Windsurf, an AI coding startup, according to a report by The Wall Street Journal. The agreement involves licensing technology and hiring the company's CEO, Varun Mohan, cofounder Douglas Chen and some of the company's key R&D employees to bring them to the Google DeepMind team. This development comes after OpenAI attempted to acquire Windsurf for $3 billion. However, negotiations fell through due to objections from Microsoft MSFT, OpenAI's largest investor, particularly concerning access to Windsurf's technology. Subscribe to the Benzinga Tech Trends newsletter to get all the latest tech developments delivered to your inbox. Google's arrangement will see a small number of Windsurf employees join its DeepMind division to work on agentic coding. The tech giant will gain a nonexclusive license to some of Windsurf's technology but will not acquire any equity in the startup. Most Windsurf employees will remain with the company. See Also: Oklahoma & Minnesota Marijuana Legalization, Repercussions After Congressional Hearing, Cannabis In Thailand - Benzinga Why It Matters: The backdrop to this deal is a fierce competition among tech giants to dominate the AI landscape. Earlier this year, OpenAI had agreed to acquire Windsurf for $3 billion. However, the acquisition fell apart, as noted by TechCrunch, when Microsoft, a key investor in OpenAI, raised concerns about access to Windsurf's technology. The failed acquisition attempt by OpenAI underscores the competitive nature of Silicon Valley, where major tech companies are in a race to secure top AI talent. Google previously invested $2.7 billion to hire former researcher Noam Shazeer and license technology from Character.AI, a startup he founded. Check out more of Benzinga's Consumer Tech coverage by following this link. Read Next: Elon Musk Rejects Reports That xAI Is Looking To Raise Additional Funds At $200 Billion Valuation: 'We Have Plenty Of Capital' Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Photo courtesy: JHVEPhoto / Shutterstock.com GOOGAlphabet Inc$181.081.33%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentum27.05Growth86.69Quality84.73Value52.19Price TrendShortMediumLongOverviewGOOGLAlphabet Inc$180.071.38%MSFTMicrosoft Corp$503.490.40%Market News and Data brought to you by Benzinga APIs
[4]
Google to pay $2.4 billion in deal to license tech of Windsurf, WSJ reports
(Reuters) -Google has agreed to pay about $2.4 billion in a deal to license the technology of artificial intelligence-assisted coding tool Windsurf, The Wall Street Journal reported on Friday, citing people familiar with the matter. Reuters could not immediately confirm the report. Earlier on Friday, a Google spokesperson told Reuters that the company has hired Windsurf CEO Varun Mohan, co-founder Douglas Chen, and select members of the coding tool's research and development team to join its DeepMind division, in a move to strengthen itself in the race for AI leadership. (Reporting by Anusha Shah in Bengaluru; Editing by Muralikumar Anantharaman)
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Google has agreed to pay $2.4 billion to license AI-assisted coding technology from Windsurf, while also hiring the startup's CEO and key staff for its DeepMind division, intensifying the race for AI dominance in Silicon Valley.
Google's Strategic Move in AI Technology Acquisition
In a significant development in the artificial intelligence (AI) sector, Google has reached an agreement to pay approximately $2.4 billion to license the technology of Windsurf, an AI-assisted coding tool startup. This deal not only involves technology licensing but also includes the acquisition of key talent from Windsurf 1.
Source: Benzinga
Key Personnel Transitions
As part of this arrangement, Google has hired Windsurf's CEO Varun Mohan, co-founder Douglas Chen, and select members of the startup's research and development team. These individuals will be joining Google's DeepMind division, a move that is seen as strengthening Google's position in the increasingly competitive race for AI leadership 2.
Deal Structure and Implications
The deal structure is noteworthy for several reasons:
- Google will gain a non-exclusive license to some of Windsurf's technology.
- The tech giant will not acquire any equity in the startup.
- Most Windsurf employees will remain with their original company.
- A small number of Windsurf employees will join Google's DeepMind division to work on agentic coding 3.
Competitive Landscape in AI
This deal comes against the backdrop of intense competition among tech giants to dominate the AI landscape. Earlier, OpenAI had attempted to acquire Windsurf for $3 billion, but the acquisition fell through due to objections from Microsoft, OpenAI's largest investor. The concerns primarily revolved around access to Windsurf's technology 3.
Google's AI Investment Strategy
This is not Google's first significant investment in AI talent and technology. Earlier this year, the company invested $2.7 billion to hire former researcher Noam Shazeer and license technology from Character.AI, a startup he founded. These moves underscore Google's commitment to maintaining a competitive edge in the rapidly evolving AI sector 3.
Industry Implications
The deal highlights the increasing value placed on AI-assisted coding tools and the talent behind them. It also demonstrates the strategic importance that major tech companies are placing on AI capabilities, particularly in areas like automated coding that have the potential to significantly impact software development processes 4.
As the AI race intensifies, such high-value deals and talent acquisitions are likely to become more common, reshaping the competitive landscape of the tech industry and potentially accelerating the pace of AI innovation.
Google Hires Windsurf CEO and Top Talent, Derailing OpenAI's $3 Billion Acquisition
Google DeepMind hires Windsurf's CEO, co-founder, and top AI coding talent, effectively ending OpenAI's planned $3 billion acquisition. The move highlights the intense competition for AI talent among tech giants.
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