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OpenAI in Discussions to Acquire AI Coding Assistant Firm Codeium
OpenAI, the prominent artificial intelligence research and deployment company, is reportedly engaged in acquisition talks with Codeium, the developer of the widely used AI coding assistant platform Windsurf. Sources cited by Bloomberg indicate the potential deal could value Codeium at approximately $3 billion. This acquisition would mark a significant move for OpenAI into the AI-assisted coding market.
Potential Competition and Conflict of Interest
Should the acquisition proceed, OpenAI would directly compete with other AI coding tool providers, notably Anysphere, the creator of Cursor. Interestingly, OpenAI has a prior financial connection with Anysphere through its OpenAI Startup Fund, which backed Cursor.
According to an individual with knowledge of Cursor’s capitalization table, this acquisition by OpenAI could potentially compromise the standing of the OpenAI Startup Fund, given its substantial investment in Cursor. It remains unclear if OpenAI has considered a similar acquisition offer for Cursor.
Signs Pointing Towards a Possible Agreement
Beyond the information disclosed to Bloomberg, further indications suggest ongoing developments between OpenAI and Codeium. Windsurf users recently received a notification email presenting an opportunity to secure access to the coding platform at a rate of $10 per month, citing an upcoming announcement later in the week.
Adding to these signals, OpenAI’s Chief Product Officer, Kevin Weil, publicly released a video praising the features of Windsurf just yesterday.
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Codeium’s Financial Standing and Market Context
In February, TechCrunch reported that Codeium was in discussions to secure new funding at a valuation of $2.85 billion, led by Kleiner Perkins. Reports also indicate Codeium has achieved approximately $40 million in annualized recurring revenue (ARR). This revenue figure is considerably less than that of Cursor, which is reportedly generating $200 million ARR. Recent reports from Bloomberg mentioned Cursor seeking capital at a valuation of around $10 billion last month.
Codeium’s Background and Funding History
Established in 2021 by Varun Mohan and Douglas Chen, childhood friends and MIT graduates, Codeium has accumulated $243 million in funding from investors, including Greenoaks Capital and General Catalyst, as reported by PitchBook data.