Archive — US — techcrunch
OpenAI pursued Cursor maker before entering into talks to buy Windsurf for $3B
OpenAI explored acquiring coding assistant Cursor's maker, Anysphere, in 2024 before opting for Windsurf for $3 billion. The talks with Anysphere fell through, while Windsurf offers key annual revenue, emphasizing the need for OpenAI to capture the growing code generation market amid rising competition and investment interest.
Key points
- OpenAI approached Anysphere, the maker of Cursor, regarding acquisition talks.
- The discussions with Anysphere failed, leading OpenAI to pursue Windsurf instead.
- Windsurf has significant annualized recurring revenue (ARR) of $40 million.
- Cursor, by Anysphere, reports a much higher ARR of approximately $200 million.
- OpenAI's Codex CLI can write and edit code, indicating its competitive positioning in the market.
Why it matters
- In 2023, AI coding assistants gained substantial traction as businesses increase reliance on automation.
- The growing valuation of coding firms, illustrated by Anysphere's $10 billion valuation talks, reflects rising investor interest in AI tech.
- By 2025, a major trend is expected to be AI's integration in coding, automating traditional software development practices.
OpenAI's pursuit of Windsurf over Anysphere underscores a strategic shift toward reinforcing its position in the rapidly evolving AI coding market amid fierce competition and changing valuations.