## OpenAI’s AI Coding Assistant Acquisition: Why Windsurf Over Cursor?
The tech world was abuzz when reports surfaced of OpenAI’s potential $3 billion acquisition of Windsurf, an AI-powered coding company. A natural question arose: Why Windsurf, when OpenAI has already invested in Anysphere, the creator of the popular AI coding assistant, Cursor?
According to a CNBC report, OpenAI did, in fact, approach Anysphere about a possible acquisition, both in 2024 and earlier this year. However, these talks were unsuccessful. Instead, Anysphere is reportedly seeking to raise capital at a staggering $10 billion valuation, as reported by Bloomberg last month, indicating a strong belief in its independent potential.
OpenAI’s shift to acquisition discussions with Windsurf underscores the company’s aggressive pursuit of the burgeoning code generation market. While Anysphere’s Cursor boasts an impressive $200 million in annualized recurring revenue (ARR), Windsurf generates a respectable $40 million in ARR, according to previous TechCrunch reports.
OpenAI is clearly determined to gain a foothold in this rapidly expanding market. The company recently unveiled its Codex CLI “agent,” an open-source coding tool designed for terminals. However, the pursuit of Windsurf suggests that OpenAI isn’t content to wait for Codex CLI to gain widespread adoption. By acquiring Windsurf, OpenAI aims to instantly secure a significant piece of the AI-assisted coding pie.