OpenAI’s planned acquisition of AI coding startup Windsurf has been cancelled. Instead, Google has hired Windsurf’s CEO Varun Mohan, cofounder Douglas Chen, and several members of its research and development team. The announcement was made jointly by Google and Windsurf on Friday.
The group will join Google DeepMind, where they’ll focus on advancing agentic coding — a method that enables AI systems to perform complex software development tasks more independently. Their efforts will center on improving Gemini, Google’s AI model. While Google is acquiring talent and licensing some of Windsurf’s technology, it will not own any stake in the company itself.
Windsurf will continue to operate independently. Jeff Wang, formerly the company’s head of business, has stepped in as interim CEO. Graham Moreno, previously the vice president of global sales, has been appointed as president.
Chris Pappas, a spokesperson for Google, stated that Gemini is among the most advanced models currently available and emphasized Google’s ongoing investment in its capabilities. He also expressed enthusiasm about bringing in Windsurf’s experienced AI coding professionals to enhance DeepMind’s agentic coding work.
In a joint statement, Mohan and Chen expressed their excitement about joining Google DeepMind alongside part of their team. They reflected positively on Windsurf’s progress over the past four years and voiced confidence in its continued success under new leadership.
While OpenAI had been in talks to acquire Windsurf for a reported $3 billion, Google has not disclosed what it paid to bring on the team. The shift in direction comes as leading tech firms continue to compete for top talent and capabilities in the evolving AI development landscape.
This move signifies a strategic win for Google DeepMind in the race to build more autonomous AI coding systems. At the same time, it gives Windsurf a chance to move forward independently with new leadership, while its cofounders and several key researchers pursue opportunities within one of the most advanced AI labs in the world.
