UPDATED: OpenAI has agreed to buy coding startup Windsurf for around US$3 billion, its largest acquisition yet.
Windsurf, formerly known as Codeium, is an artificial intelligence tool capable of writing code based on text prompts. OpenAI hosts similar coding features, with its GPT-4.1 model introduced last month prioritising coding improvements.
The deal has yet to close, per Bloomberg. Windsurf began raising a new round of funding at a US$2.85 billion valuation in February, and OpenAI has been negotiating an acquisition since at least April.
OpenAI also said today that it will remain controlled by a non-profit as it restructures into a public benefit corporation, reversing course.
The artificial intelligence company has been transitioning into a for-profit entity, and previously sought to separate non-profit from OpenAI’s main operations.
“We made the decision for the nonprofit to stay in control after hearing from civic leaders and having discussions with the offices of the Attorneys General of California and Delaware,” said OpenAI CEO Sam Altman.
“The for-profit LLC under the nonprofit will transition to a Public Benefit Corporation (PBC) with the same mission. PBCs have become the standard for-profit structure for other AGI labs like Anthropic and xAI, as well as many purpose-driven companies like Patagonia. We think it makes sense for us, too.”
The non-profit will be a major shareholder in the public benefit corporation.
Altman says this revised structure will allow the company to raise the large amounts of capital needed to ensure its AI models are widely available.
OpenAI aims to develop artificial general intelligence, which can perform similar cognitive tasks to a human. Non-profit control would demonstrate its commitment to safety during this process, Altman said.
The company began as a non-profit research organisation in 2015, with co-founders including Altman and Elon Musk. Musk, who has since left the company, sued to halt OpenAI’s transition to a for-profit, with a trial scheduled for December.
While the company has yet to turn a profit, it projected in March that revenue would grow to US$12.7 billion in 2025
