OpenAI is negotiating to acquire Windsurf, a firm creating a programming AI helper. It has been reported that the deal could be worth more than $3 billion.

Recently, Windsurf, a company that focuses on using AI for coding, was valued at $1.25 billion. The business is currently looking for $3 billion in capital.

Since its 2021 launch, the firm has raised more than $200 million in venture finance. AIX Ventures and Greenoaks Capital Partners are among the investors in the business. Anysphere, the company behind the Cursor tool, Microsoft-owned GitHub, and Anthropic are just a few of the major players in the market that OpenAI will be able to directly compete with if the purchase closes.

The market for AI programming tools is expanding quickly at the moment, and businesses are becoming more interested in mergers and acquisitions. Additionally, investors are actively supporting firms such as Anysphere, which earlier this year saw a valuation of about $10 billion.

SoftBank Group provided a $40 billion funding round that OpenAI successfully closed in September 2024, valuing ChatGPT at $300 billion. The purchase of Windsurf will be a key component of the business’s plan to expand and solidify its place in the market for AI development tools.