OpenAI in discussions to buy AI coding tool Windsurf for $3 billion; weighs investing in the UK

April 16 (Reuters): OpenAI is in discussions to buy artificial intelligence-assisted coding tool Windsurf for about $3 billion, Bloomberg News reported.

The deal would be OpenAI’s largest to date, the terms of which have not yet been finalized, the report said, adding the talks could change or fall apart.

Windsurf was in talks with investors such as Kleiner Perkins and General Catalyst to raise funding at a $3 billion valuation, the report added.

It closed a $150 million funding round led by General Catalyst last year, valuing it at $1.25 billion.

Investor enthusiasm for the artificial intelligence sector has surged significantly in recent years, driven by the widespread adoption of chatbots and the emergence of sophisticated AI agents.

The ChatGPT maker said in March it would raise up to $40 billion in a new funding round, valuing it at $300 billion.

Microsoft-backed OpenAI acquired search and database analytics startup Rockset in a nine-figure stock deal last year, to provide better infrastructure for its enterprise products.

Also, according to Financial Times report on Thursday, the company, along with Stargate, the $500 billion U.S. data-centre project funded by SoftBank (9984.T), and Oracle (ORCL.N) is weighing a future investment in the UK as it explores overseas locations to build out AI infrastructure.

British Prime Minister Keir Starmer has promised to take a pro-innovation approach to regulation, make public data available to researchers and create zones for data centres as he strives to make the UK an artificial intelligence “superpower.”

These efforts to boost data centres’ access to electricity have attracted the project’s interest along with Germany and France, which have also emerged as attractive candidates, the report said, citing people familiar with the matter.

OpenAI says it does not use Indian media groups’ content to train ChatGPT

OpenAI, Oracle and SoftBank did not immediately respond to Reuters requests for comments.

OpenAI CEO Sam Altman in February signalled willingness to bring a Stargate-like AI program to Europe, saying his company would “love” to do a Stargate Europe.

OpenAI has expanded to the European continent in recent years, announcing offices in London, Paris, Brussels and Munich.

U.S. President Donald Trump unveiled the Stargate project in January as a private sector investment aimed to fund infrastructure for artificial intelligence, aiming to outpace rival nations in the business.

Investor enthusiasm for the artificial intelligence sector has surged significantly in recent years, driven by the widespread adoption of chatbots and the emergence of sophisticated AI agents.