OpenAI is reportedly in talks to buy Codeium for $3B
a year ago
- #Acquisition
- #AI
- #Startups
- Codeium, maker of AI coding assistant Windsurf, is in talks to be acquired by OpenAI for $3 billion.
- The acquisition could put OpenAI in competition with other AI coding assistant providers, including Cursor, which OpenAI has backed.
- The deal may jeopardize the credibility of the OpenAI Startup Fund, a major investor in Cursor.
- Windsurf users were recently offered a $10/month subscription lock-in ahead of an announcement.
- OpenAI’s CPO praised Windsurf’s capabilities in a recent video.
- Codeium was previously in talks to raise funds at a $2.85B valuation and has $40M ARR, lower than Cursor’s $200M ARR.
- Cursor is reportedly seeking a $10B valuation in funding talks.
- Codeium was founded in 2021 by Varun Mohan and Douglas Chen and has raised $243M.