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Re:

OpenAI Pursued Cursor’s Maker Before Its Failed $3 Billion Windsurf Deal

OpenAI reportedly approached Anysphere, then agreed to buy Windsurf for about $3 billion—but the deal collapsed. Google hired key Windsurf talent and licensed its technology, while Cognition acquired the remaining business.
From TheFinanceBase Team6 min to read
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OpenAI never completed either acquisition. CNBC-reported accounts said OpenAI approached Anysphere, the company behind Cursor, in 2024 and again in early 2025. OpenAI then moved into reported talks to buy Windsurf, formerly Codeium, for about $3 billion. That transaction collapsed in July 2025. Google instead hired Windsurf’s top leaders and researchers and licensed its technology, while Cognition later acquired Windsurf’s remaining business.

The short answer

There are three separate events behind the headline:

  • Anysphere: OpenAI reportedly explored acquiring the company that makes Cursor, but no sale resulted.
  • Windsurf: OpenAI’s reported agreement to buy the AI coding company for approximately $3 billion never closed.
  • Aftermath: Google obtained key personnel and a nonexclusive technology license, and Cognition acquired the remaining Windsurf business.

“Cursor maker” means Anysphere; Cursor is its product. Likewise, Windsurf was the product and company name used by the business formerly known as Codeium. The available reporting does not establish OpenAI’s exact offer to Anysphere, why those discussions ended, or the precise reason its Windsurf transaction failed.

Timeline: from OpenAI’s Anysphere investment to Cognition’s acquisition

Date What happened What is established
October 2023 OpenAI’s Startup Fund invested in Anysphere. TechCrunch reported an $8 million investment to help build an AI-powered IDE. TechCrunch
2024 OpenAI reportedly approached Anysphere about an acquisition. The account was attributed to CNBC reporting; the price, structure and negotiating details were not publicly established. TechCrunch
December 2024 Anysphere reportedly raised $100 million at a $2.6 billion valuation. This was a financing valuation, not a sale price. TechCrunch
Early 2025 OpenAI reportedly made another approach to Anysphere. Reporting said Anysphere was discussing a financing round at roughly a $10 billion valuation; that fundraising figure was not a completed acquisition value. TechCrunch
April 16–17, 2025 OpenAI’s Windsurf talks became public. Reports described advanced negotiations for more than $3 billion, not a completed transaction. OpenAI also released Codex CLI on April 16. Axios
May 5, 2025 OpenAI reportedly agreed to buy Windsurf for about $3 billion. Reuters attributed the report to Bloomberg and people familiar with the matter. The agreement still required closing. Reuters report via Investing.com
July 11, 2025 The exclusivity period expired and OpenAI’s proposed purchase fell apart. Google DeepMind hired CEO Varun Mohan, co-founder Douglas Chen and senior researchers. Google reportedly did not buy an equity stake. Reuters
July 14, 2025 Cognition announced an agreement to acquire Windsurf’s remaining business. The transaction covered Windsurf’s product, intellectual property, trademark and personnel not hired by Google. TechCrunch

Why an AI coding company was strategically valuable

AI coding products sit inside the developer’s daily workflow rather than at the edge of it. An AI-native editor or coding agent can observe repository context, propose and edit files, run tests, help debug failures and connect to deployment tools. That position can provide:

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  • Distribution: a direct path to developers and engineering teams.
  • Workflow integration: persistent codebase context, terminal access, review loops and tool integrations.
  • Feedback: real-world signals about where models succeed or fail in software work.
  • Enterprise relationships: security, administration and procurement channels that a model API may not provide on its own.

OpenAI already had coding-model and agent capabilities. Acquiring a widely used product could have accelerated adoption and embedded those capabilities in the development process. That is an inference from the sequence of reported approaches and OpenAI’s concurrent coding-product work, not a publicly stated explanation from OpenAI.

Cursor and Windsurf were not interchangeable targets

Company or product Relevant reported signal How to interpret it
Anysphere / Cursor Cursor revenue was reported at approximately $200 million in annual recurring revenue. An estimate, not an audited company disclosure. TechCrunch
Windsurf / Codeium Windsurf revenue was reported at approximately $40 million in annual recurring revenue. Also an estimate, not an audited disclosure. TechCrunch
Anysphere financing $100 million raised at a reported $2.6 billion valuation in December 2024. A financing signal, not proof of what an acquisition would have cost.
Windsurf proposed transaction More than $3 billion in April reports; approximately $3 billion in the later agreement report. Approximate reported consideration for a proposed deal that never closed.

Cursor’s stronger reported revenue momentum does not prove that it had better technology or was the better acquisition target. The public record does not reveal whether Anysphere preferred independence, sought a higher valuation, or had other reasons not to sell. Windsurf may have presented a different mix of agent features, enterprise capabilities, technical assets or deal availability, but those explanations remain analysis rather than confirmed motives.

What the $3 billion Windsurf figure does—and does not—mean

In April, Axios described advanced talks for more than $3 billion. In May, Reuters reported that OpenAI had agreed to buy Windsurf for about $3 billion, citing Bloomberg. Those reports describe negotiations and an agreement subject to completion. They do not mean OpenAI paid $3 billion or became Windsurf’s owner.

The exclusivity period later expired, and the proposed acquisition fell apart. The companies did not publicly establish a single definitive cause in the reporting cited here. Later coverage discussed issues involving access to partners and technology, but those accounts should not be treated as the sole confirmed explanation without a separately documented source.

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How the Windsurf outcome was divided

Google took people and a license

Google DeepMind hired Mohan, Chen and senior Windsurf research personnel. Reuters reported a transaction worth about $2.4 billion in license fees and related arrangements. TechCrunch described the technology license as nonexclusive, meaning Windsurf could still license the technology to other parties. This was not an acquisition of Windsurf itself.

The distinction matters: hiring founders is not the same as buying their former company, and a technology license grants defined rights without transferring the entire corporate entity.

Cognition acquired what remained

On July 14, 2025, Cognition—the company behind Devin—announced a definitive agreement to acquire Windsurf’s remaining business. The announcement covered the product, intellectual property, trademark and personnel who did not join Google. Cognition therefore became the reported owner of the remaining Windsurf operation after the OpenAI deal failed and Google’s separate transaction was completed.

Why OpenAI may have switched from Cursor to Windsurf

No public filing or company statement supplies OpenAI’s internal decision rule. Several explanations are plausible, but each should be treated as analysis:

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  • Valuation pressure: Anysphere’s reported valuation increased rapidly, and its reported early-2025 fundraising discussions were around $10 billion.
  • Availability: Anysphere may have favored raising capital instead of selling, although its preference was not publicly confirmed.
  • Product fit: Windsurf may have offered a combination of agentic coding, enterprise features or technical assets that suited OpenAI’s plans.
  • Speed: Buying an established product could have been faster than building distribution while OpenAI’s own coding tools matured.
  • Negotiating alternatives: A second target can reduce dependence on one seller, but there is no evidence that this was OpenAI’s specific motive.

Nothing in the available reporting supports the claim that OpenAI abandoned Cursor because Cursor was technically inferior.

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What this says about AI coding-company value

The episode shows that an AI startup’s value can be separated into components:

  • Product and distribution: the editor, agent, users and customer relationships.
  • People: founders and researchers whose expertise may be portable.
  • Intellectual property: code, models, systems and other technical assets.
  • Access rights: licenses that can be transferred without selling the company.
  • Enterprise position: contracts, controls and integrations that may survive a change in ownership.

OpenAI reportedly sought the whole company. Google obtained key people and technology rights. Cognition obtained the remaining operating business. That sequence is why describing the story simply as “OpenAI bought Windsurf” is inaccurate.

How to evaluate the competing coding products

Readers deciding among Cursor, Windsurf, OpenAI Codex, Devin, GitHub Copilot and Claude Code should assess the workflow rather than the acquisition headlines.

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  • Distribution and fit: Does the tool work in the team’s existing IDE, terminal and repository platform?
  • Workflow depth: Can it understand a large codebase, edit multiple files, run tests and support debugging?
  • Model flexibility: Is the product tied to one provider, or can the team choose among models?
  • Enterprise controls: Check SSO, administration, auditability, privacy, retention and compliance terms.
  • Cost structure: Compare seat fees, token or usage charges, caps and overage rules; historical reports are not current pricing.
  • Change risk: Ownership transitions can alter support, data policies, integrations and plan terms.

Relevant products

Bottom line

OpenAI reportedly pursued Anysphere and then Windsurf because control of the developer workflow had become strategically important. Neither effort made OpenAI the owner of the target. The Windsurf saga ended with a failed proposed acquisition, Google’s separate talent-and-technology transaction, and Cognition’s acquisition of the remaining business.

Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.

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