OpenAI's Pursuit of Cursor and Talks to Buy Windsurf

The tech world is buzzing with news of OpenAI's pursuit of AI coding companies. Recent reports indicate that OpenAI was in talks to acquire Windsurf for a staggering $3 billion. This move has prompted many to question why OpenAI didn't set its sights on Anysphere, the creator of the popular coding assistant, Cursor. Anysphere, backed by the OpenAI Startup Fund since its seed round in late 2023, has been a rising star in the AI coding space.
According to CNBC, OpenAI indeed approached Anysphere in 2024 and again earlier this year regarding a potential acquisition. However, these discussions were unsuccessful. Instead, Anysphere is reportedly in talks to raise capital at a valuation of approximately $10 billion, as reported by Bloomberg last month. OpenAI's shift in focus towards Windsurf suggests the growing importance of securing a foothold in the code generation market for the ChatGPT maker.
Windsurf is currently generating around $40 million in annualized recurring revenue (ARR), according to TechCrunch. In comparison, Anysphere's Cursor boasts an impressive $200 million in ARR. While OpenAI recently released its Codex CLI "agent," which is capable of writing and editing code, the company's attempt to acquire Windsurf indicates a desire to expedite its entry into the market.
In other news, for those looking to delve into the world of AI, a wide range of AI courses are available to take for free on Udemy. This comes as AI continues to become more relevant, and widespread. The courses are a good opportunity to master the technology.