Google’s Bold “Acquihire” & License Deal
Google just dropped $2.4 billion not to buy Windsurf but to do something even bigger and strategic. CEO Varun Mohan, co-founder Douglas Chen, and the major minds behind the R&D. They are now a part of Deepmind’s Gemini coding team, making it one of the best AI coding assistants.
OpenAI’s $3 B Bid, And Why It Fell Apart?
Before Google’s interference, OpenAI was in talks to acquire Windsurf for $3 billion. The only issue was Windsurf’s IP address, which linked back to Microsoft. That raised some major red flags in the collaboration. Several negotiations went south and hit a dead end at last. Obviously, Google saw a loophole and grabbed the opportunity to make Gemini one of the best AI coding assistants.
Cognition Joins In
Once Google took the top people and a license, Cognition and coordination were bound to happen, but don’t let those words fool you. Google now owns Windsurf’s remaining IP, the full product line, the brand, and its $82M annual recurring revenue, all of it. For a startup that’s also betting big on AI coding assistants, this move gave them an instant foundation and a revenue stream to scale. But under Google’s supervision of everything related to Windsurf.
Why This Matters for AI Coding Assistants?
Windsurf’s AI coding assistant, aka Cascade agent, which is already used by almost 1 million developers all around the world, is now a part of Gemini. It doesn’t just offer a few lines of code. It writes, rewrites, runs, and learns with and from the user. This isn’t merely about keeping up with the Kardashians, aka GitHub, Copilot, or AWS CodeWhisperer. With Gemini now supported by Windsurf’s tech and talent, Google’s obviously going for AI coding assistant dominance. Especially in the enterprise space, where speed, security, and compliance are the topmost priorities.
Stock & Market Repercussions
Alphabet’s shares look undervalued at around 20× earnings, which is below their usual range. Oppenheimer and JMP analysts are among those looking at a possible 25–30% move, especially with AI coding assistants now increasing growth. Even with some regulatory commotion. This transition into AI makes Alphabet’s position even stronger in the long run, thanks to the recent acquisition.
Future Landscape of AI Coding Assistants
Google is merely getting started, with Windsurf’s features now on Gemini, expect more advanced and quicker AI coding aides to follow. Big Tech is not sitting around either; Meta has already gone out with $100 million offers to poach talent, and more will follow. And as Google pushes deeper into generative AI, including video generation with Veo, don’t be surprised if regulators take a closer look or if tensions with OpenAI and Microsoft heat up again, but Google will find a way to solve that, too.
Until we meet next, scroll!
