OpenAI’s Acquisition of Windsurf Is Cancelled as CEO Joins Google

OpenAI’s plan to acquire the AI coding startup Windsurf has fallen through. Instead, Windsurf’s CEO Varun Mohan, co-founder Douglas Chen, and several key R&D employees will be joining Google’s DeepMind team. This transition was announced by both companies on July 11, 2025.

The new team at Google will focus on advancing agentic coding initiatives, primarily working on the Gemini project, a cutting-edge AI model. Notably, Google will not hold ownership or stakes in Windsurf but will obtain a non-exclusive license to utilize some of Windsurf’s technology.

In the wake of the leadership changes, Jeff Wang, the head of business at Windsurf, has stepped in as the interim CEO, while Graham Moreno, the previous VP of global sales, will assume the role of president.

Chris Pappas, a Google spokesperson, expressed enthusiasm about welcoming the talented team from Windsurf to enhance their capabilities in agentic coding. In a joint statement, Mohan and Chen highlighted their pride in what Windsurf has achieved over four years and look forward to integrating with Google’s world-class team.

The financial details of this arrangement remain undisclosed, but it is worth noting that OpenAI was previously considering a $3 billion acquisition deal for Windsurf.