In a strategic move to enhance its AI capabilities in coding automation, Google has brought on board Indian-origin entrepreneur Varun Mohan, co-founder and CEO of AI coding startup Windsurf. This collaboration is aimed at accelerating the development of Google’s Gemini platform, particularly in the area of intelligent coding agents.
Demis Hassabis, Co-Founder and CEO of Google DeepMind, announced the development via X, stating:
“Thrilled to welcome @windsurf_ai founders Varun Mohan and Douglas Chen and some of the brilliant Windsurf eng team to @GoogleDeepMind. Excited to be working with them to turbocharge our Gemini efforts on coding agents, tool use, and much more.”
The agreement, valued at $2.4 billion, is structured as a licensing and compensation deal. It grants Google a non-exclusive license to Windsurf’s intellectual property, allowing the startup to remain independent and continue licensing its technologies to other companies. The deal is not an acquisition and involves no equity transfer.
Windsurf, known for its innovative “vibe coding” approach, focuses on making AI-assisted development more intuitive and collaborative. The company has been at the forefront of creating tools that treat code generation as a creative partnership rather than predictive output.
Douglas Chen, co-founder of Windsurf, and several core engineers are also joining Google DeepMind, where they are expected to contribute significantly to the field of “agentic coding”—a domain focused on developing AI models that behave as co-developers.
This move marks a significant shift in the competitive AI landscape, especially after reports that OpenAI had been in exclusive acquisition talks with Windsurf earlier this year, valuing the startup at nearly $3 billion. With that exclusivity period now expired, Google’s entry marks a strategic win.
Jeff Wang, interim CEO of Windsurf, confirmed that the company will continue to develop its enterprise product even as its core team transitions to Google. “We’re excited about what lies ahead and proud that our team will help shape the next wave of AI-assisted development,” he posted on X.
As major players like Google, Microsoft, OpenAI, and Meta vie for dominance in the AI developer tools space, this partnership underscores the growing importance of intelligent coding platforms in the next generation of software development.
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