Google parent company Alphabet has struck a $2.4 billion deal to acquire talent and technology from AI coding startup Windsurf. The agreement brings CEO Varun Mohan and co-founder Douglas Chen directly into Google’s DeepMind AI division.

🚨BREAKING: OPENAI’S DEAL TO BUY WINDSURF IS OVER

> Google will instead hire Windsurfs CEO and bring the team to work at DeepMind pic.twitter.com/cN1ilGhes8

— NIK (@ns123abc) July 11, 2025

The deal comes after months of negotiations between Windsurf and OpenAI over a potential $3 billion acquisition. Those talks reportedly fell apart due to friction with Microsoft.

Google is paying $2.4 billion total, covering both licensing fees and compensation for incoming Windsurf talent. Several senior R&D staff members from Windsurf will also join Google as part of the agreement.

The incoming Windsurf team will focus on agentic coding initiatives at DeepMind. Much of their work will center around Google’s Gemini AI platform.

Google secured a nonexclusive license to certain Windsurf technologies. This arrangement allows the startup to continue licensing its innovations to other firms.

Tech giants are offering premium salaries and strategic roles to secure top AI minds. The competition has reached new heights as companies race to dominate the AI space.

Meta Platforms has been actively recruiting talent from OpenAI. CEO Mark Zuckerberg personally interviews and oversees hires for the company’s newly formed Superintelligence team.

Meta recently hired Ruoming Pang, Apple’s former AI chief. Bloomberg reported that Pang received over $200 million, one of the largest pay packages in the AI talent war.

Google’s latest move demonstrates its commitment to competing with rivals like OpenAI and Anthropic. The company is investing heavily in both intellectual property and human capital.

Alphabet stock closed at $180.19, up 1.45% on the day. The stock traded between $176.48 and $181.43 during the session.

After-hours trading showed a slight dip to $179.89. The company’s market capitalization stands at approximately $2.19 trillion.

Analysts maintain a Strong Buy consensus rating on GOOGL stock. The rating is based on 28 Buys and nine Holds assigned in the past three months.

The average GOOGL price target of $202.24 per share implies a 12.24% upside potential. Most analysts cite strong growth prospects in AI and cloud computing.

Google’s latest quarterly results exceeded Wall Street expectations. Both advertising and cloud revenue showed strong year-over-year growth.

The company recently announced a cash dividend of 20 cents per share. This reflects its strong cash flow and shareholder return strategy.

Google’s Gemini AI tool now features the ability to turn photos into short video clips with sound. This highlights ongoing advancements in generative AI technology.

The company plans to offer major discounts on cloud services to the U.S. government. This follows a similar move by Oracle in the competitive cloud sector.

Alphabet’s upcoming earnings announcement is scheduled for July 21, 2025. Options markets are implying a potential 6% move in the stock price post-results.