OpenAI Shifted Acquisition Focus from Cursor to Windsurf Amid Code Assistant Race

OpenAI, known for its ChatGPT technology, initially sought to acquire Anysphere, the startup behind the AI coding assistant Cursor, before turning its attention to another company in the same space, Windsurf. Despite its prior investment in Anysphere through the OpenAI Startup Fund and attempts to acquire it in 2024 and early 2025, discussions ultimately fell through. Anysphere is now reportedly in talks to raise funds at a $10 billion valuation, according to Bloomberg.

With its focus still firmly on dominating the code generation market, OpenAI is now negotiating to purchase Windsurf for $3 billion. Windsurf is an AI code assistant generating around $40 million in annual recurring revenue (ARR), while Cursor reportedly achieves $200 million ARR. The move highlights OpenAI’s aggressive strategy to expand its presence in the AI-driven software development sector.

This pursuit also comes on the heels of OpenAI’s release of Codex CLI, its own tool for coding tasks. However, the acquisition talks suggest OpenAI may not want to rely solely on internal products gaining user traction. The company’s prioritization of established products like Windsurf reflects the high stakes in the competitive AI coding tools landscape.