Mon Jul 14 18:30:00 UTC 2025: ## Google Snaps Up AI Coding Talent, Poaching Windsurf Execs in $2.4B Deal

**MOUNTAIN VIEW, CA -** Google has intensified the race for AI talent, announcing a deal to bring in Varun Mohan, co-founder and CEO of AI coding startup Windsurf, along with other key research and development personnel. The move comes after Windsurf’s previous acquisition talks with OpenAI fell through.

While not investing directly in Windsurf, Google will gain a non-exclusive license to select Windsurf technology in exchange for $2.4 billion, encompassing licensing fees and compensation. This allows Windsurf to continue licensing its technology to other companies.

“We’re excited to welcome some top AI coding talent from Windsurf’s team to Google DeepMind to advance our work in agentic coding,” a Google spokesperson stated, emphasizing the aim to enhance software development through the use of their Gemini AI model.

The acquisition highlights the escalating competition for AI expertise. Meta recently lured Scale AI founder Alexandr Wang with a lucrative offer to spearhead its AI strategy, backed by a $14.3 billion investment in Scale AI.

Douglas Chen, another Windsurf co-founder, is also slated to join Google. Jeff Wang, Windsurf’s interim CEO, confirmed that the majority of Windsurf’s team will continue developing the product to maximize its impact in the enterprise.

Windsurf has gained traction in the “vibe coding” space, leveraging AI tools to streamline code writing for developers and non-developers alike. This surging interest has fueled higher valuations for Windsurf and similar companies like Cursor, which OpenAI also considered acquiring.

Google’s acquisition follows a pattern of absorbing AI talent from promising startups, similar to its previous recruitment of individuals from Character.AI. Amazon and Microsoft have also pursued similar strategies with Adept and Inflection, respectively.

Microsoft is actively integrating AI into its development environment, with CEO Satya Nadella reporting that AI currently composes approximately 30% of the company’s code.

The deal was initially reported by The Verge.

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