Google hired Windsurf’s core team and licensed its AI tech for $2.4B to support agentic coding in DeepMind’s Gemini project.

Bay Area tech companies are battling to build popular, useful artificial intelligence — and the fight just ripped apart a startup. Windsurf, an AI company based in Mountain View, began last week as a reported $3 billion acquisition target for OpenAI.

As of Friday, Windsurf’s head of business, Jeff Wang, will take over as the startup’s interim CEO, he announced in a post on social media. Most of Windsurf’s 250 person team is not headed to Google DeepMind and will continue offering its AI coding tools for enterprise customers.

B deal with the artificial intelligence code generation tool company Windsurf for its licensing rights and talent will likely increase competition in the DevSecOps space. This could apply pressure on companies such as GitLab (NASDAQ:GTLB) and JFrog (NASDAQ:FROG),

Alphabet Inc. has finalised a $2.4 billion deal to recruit executives from AI startup Windsurf after negotiations with OpenAI stalled. Windsurf CEO Varun Mohan and others will join Google's DeepMind team.