# OpenAI Shifts Acquisition Focus to Windsurf After Cursor Declines Offer

## OpenAI Shifts Acquisition Focus to Windsurf After Cursor Declines Offer

OpenAI, the company behind ChatGPT, initially set its sights on acquiring Anysphere, the creator of the popular AI coding assistant, Cursor. However, sources close to Anysphere tell TechCrunch that the company’s explosive growth made it resistant to acquisition, even by a tech giant like OpenAI. Instead, OpenAI is now reportedly in talks to acquire Windsurf, another rapidly growing AI coding startup, for $3 billion.

Cursor has become a highly sought-after tool in the AI-powered coding space. According to sources, the company’s revenue has been doubling roughly every two months, resulting in an impressive average annual recurring revenue (ARR) of around $300 million. This remarkable growth fueled Anysphere’s decision to rebuff early acquisition talks with OpenAI, despite receiving other offers as well. The startup is reportedly aiming to maintain its independence and is currently in discussions to raise capital at a valuation of approximately $10 billion.

While failing to acquire Anysphere, OpenAI remained determined to acquire an established AI coding tool startup. After evaluating more than 20 potential targets, they reportedly turned their attention to Windsurf. While smaller than Cursor, Windsurf boasts a significant ARR of around $100 million, a substantial increase from the $40 million reported in February.

Windsurf has been gaining traction within the developer community, particularly for its product’s compatibility with legacy enterprise systems. This feature likely contributed to OpenAI’s interest, as it seeks to expand its reach across different development environments. Neither Windsurf nor OpenAI have commented on the ongoing acquisition talks.

Analysts believe OpenAI’s acquisition strategy stems from the increasing competition in the foundational AI model space. Companies like Google with Gemini and China’s DeepSeek are intensifying pricing pressure. Furthermore, competitors like Anthropic and Google have recently launched AI models that surpass OpenAI’s models in coding benchmarks, making them increasingly attractive choices for developers.

Acquiring a popular AI coding assistant like Windsurf would provide OpenAI with a ready-made solution, circumventing the need to build a competing product from scratch. Chris Farmer, partner and CEO at SignalFire, suggests that OpenAI will likely continue to be acquisitive at the application layer, viewing it as an “existential” need. The move signifies a strategic effort to integrate AI tools into the developer workflow and maintain a competitive edge in the rapidly evolving AI landscape.