Why OpenAI wanted to buy Cursor but opted for the fast-growing Windsurf

23/05/2025

Why OpenAI wanted to buy Cursor but opted for the fast-growing Windsurf | TechCrunch

===============
Why OpenAI wanted to buy Cursor but opted for the fast-growing Windsurf | TechCrunch

===============
[Skip to content](https://techcrunch.com/2025/04/22/why-openai-wanted-to-buy-cursor-but-opted-for-the-fast-growing-windsurf/#wp–skip-link–target)

[![Image 1](https://techcrunch.com/wp-content/uploads/2024/09/tc-lockup.svg)TechCrunch Desktop Logo](https://techcrunch.com/)[![Image 2](https://techcrunch.com/wp-content/uploads/2024/09/tc-logo-mobile.svg)TechCrunch Mobile Logo](https://techcrunch.com/)

* [Latest](https://techcrunch.com/latest/)
* [Startups](https://techcrunch.com/category/startups/)
* [Venture](https://techcrunch.com/category/venture/)
* [Apple](https://techcrunch.com/tag/apple/)
* [Security](https://techcrunch.com/category/security/)
* [AI](https://techcrunch.com/category/artificial-intelligence/)
* [Apps](https://techcrunch.com/category/apps/)

* [Events](https://techcrunch.com/events/)
* [Podcasts](https://techcrunch.com/podcasts/)
* [Newsletters](https://techcrunch.com/newsletters/)

Submit

Site Search Toggle

Mega Menu Toggle

### Topics

[Latest](https://techcrunch.com/latest/)

[AI](https://techcrunch.com/category/artificial-intelligence/)

[Amazon](https://techcrunch.com/tag/amazon/)

[Apps](https://techcrunch.com/category/apps/)

[Biotech & Health](https://techcrunch.com/category/biotech-health/)

[Climate](https://techcrunch.com/category/climate/)

[Cloud Computing](https://techcrunch.com/tag/cloud-computing/)

[Commerce](https://techcrunch.com/category/commerce/)

[Crypto](https://techcrunch.com/category/cryptocurrency/)

[Enterprise](https://techcrunch.com/category/enterprise/)

[EVs](https://techcrunch.com/tag/evs/)

[Fintech](https://techcrunch.com/category/fintech/)

[Fundraising](https://techcrunch.com/category/fundraising/)

[Gadgets](https://techcrunch.com/category/gadgets/)

[Gaming](https://techcrunch.com/category/gaming/)

[Google](https://techcrunch.com/tag/google/)

[Government & Policy](https://techcrunch.com/category/government-policy/)

[Hardware](https://techcrunch.com/category/hardware/)

[Instagram](https://techcrunch.com/tag/instagram/)

[Layoffs](https://techcrunch.com/tag/layoffs/)

[Media & Entertainment](https://techcrunch.com/category/media-entertainment/)

[Meta](https://techcrunch.com/tag/meta/)

[Microsoft](https://techcrunch.com/tag/microsoft/)

[Privacy](https://techcrunch.com/category/privacy/)

[Robotics](https://techcrunch.com/category/robotics/)

[Security](https://techcrunch.com/category/security/)

[Social](https://techcrunch.com/category/social/)

[Space](https://techcrunch.com/category/space/)

[Startups](https://techcrunch.com/category/startups/)

[TikTok](https://techcrunch.com/tag/tiktok/)

[Transportation](https://techcrunch.com/category/transportation/)

[Venture](https://techcrunch.com/category/venture/)

### More from TechCrunch

[Events](https://techcrunch.com/events/)

[Startup Battlefield](https://techcrunch.com/startup-battlefield/)

[StrictlyVC](https://strictlyvc.com/)

[Newsletters](https://techcrunch.com/newsletters/)

[Podcasts](https://techcrunch.com/podcasts/)

[Videos](https://techcrunch.com/video/)

[Partner Content](https://techcrunch.com/sponsored/)

[TechCrunch Brand Studio](https://techcrunch.com/brand-studio/)

[Crunchboard](https://www.crunchboard.com/)

[Contact Us](https://techcrunch.com/contact-us/)

![Image 3: AI robot face and programming code on a black background.](https://techcrunch.com/wp-content/uploads/2025/02/GettyImages-1356382582.jpg?w=1024)

**Image Credits:**Yuichiro Chino / Getty Images

[Startups](https://techcrunch.com/category/startups/)

[](https://www.facebook.com/sharer.php?u=https%3A%2F%2Ftechcrunch.com%2F2025%2F04%2F22%2Fwhy-openai-wanted-to-buy-cursor-but-opted-for-the-fast-growing-windsurf%2F)[](https://twitter.com/intent/tweet?url=https%3A%2F%2Ftechcrunch.com%2F2025%2F04%2F22%2Fwhy-openai-wanted-to-buy-cursor-but-opted-for-the-fast-growing-windsurf%2F&text=Why+OpenAI+wanted+to+buy+Cursor+but+opted+for+the%C2%A0fast-growing%C2%A0Windsurf&via=techcrunch)[](https://www.linkedin.com/shareArticle?url=https%3A%2F%2Ftechcrunch.com%2F2025%2F04%2F22%2Fwhy-openai-wanted-to-buy-cursor-but-opted-for-the-fast-growing-windsurf%2F&title=Why+OpenAI+wanted+to+buy+Cursor+but+opted+for+the%C2%A0fast-growing%C2%A0Windsurf&summary=Anysphere%2C+maker+of+AI+coding+assistant+Cursor%2C+is+growing+so+quickly+that+it%E2%80%99s+not+in+the+market+to+be+sold%2C+even+to+OpenAI%2C+a+source+close+to+the+company+tells+TechCrunch.+It%E2%80%99s+been+a+hot+target.+Cursor+is+one+of+the+most+popular+AI-powered+coding+tools%2C+and+its+revenue+has+been+growing+astronomically+%E2%80%94+doubling+%5B%E2%80%A6%5D&mini=1&source=TechCrunch)[](https://www.reddit.com/submit?url=https%3A%2F%2Ftechcrunch.com%2F2025%2F04%2F22%2Fwhy-openai-wanted-to-buy-cursor-but-opted-for-the-fast-growing-windsurf%2F&title=Why+OpenAI+wanted+to+buy+Cursor+but+opted+for+the%C2%A0fast-growing%C2%A0Windsurf)[](mailto:?subject=Why+OpenAI+wanted+to+buy+Cursor+but+opted+for+the%C2%A0fast-growing%C2%A0Windsurf&body=Article%3A+https%3A%2F%2Ftechcrunch.com%2F2025%2F04%2F22%2Fwhy-openai-wanted-to-buy-cursor-but-opted-for-the-fast-growing-windsurf%2F)[](https://techcrunch.com/2025/04/22/why-openai-wanted-to-buy-cursor-but-opted-for-the-fast-growing-windsurf/)

Why OpenAI wanted to buy Cursor but opted for the fast-growing Windsurf
=======================================================================

[Marina Temkin](https://techcrunch.com/author/marina-temkin/)

[Maxwell Zeff](https://techcrunch.com/author/maxwell-zeff/)

3:42 PM PDT · April 22, 2025

Anysphere, maker of AI coding assistant Cursor, is growing so quickly that it’s not in the market to be sold, even to OpenAI, a source close to the company tells TechCrunch.

It’s been a hot target. Cursor is one of the most popular AI-powered coding tools, and its revenue has been growing astronomically — doubling on average every two months, according to another source. Anysphere’s current average annual recurring revenue is about $300 million, according to the two sources.

The company previously walked away from early acquisition discussions with OpenAI, after the ChatGPT maker approached Cursor, the two sources close to the company confirmed, and [CNBC previously reported](https://www.cnbc.com/2025/04/17/openai-looked-at-cursor-before-considering-deal-with-rival-windsurf.html). Anysphere has also received other acquisition offers that the company didn’t consider, according to one of these sources.

Cursor turned down the offers because the startup wants to stay independent, said the two people close to the company. Instead, Anysphere has been in talks to raise capital at [about a $10 billion valuation](https://techcrunch.com/2025/03/07/cursor-in-talks-to-raise-at-a-10b-valuation-as-ai-coding-sector-booms/), Bloomberg reported last month.

Although it didn’t nab Anysphere, OpenAI didn’t give up on buying an established AI coding tool startup. OpenAI talked with more than 20 others, CNBC reported.

And then it got serious over the next-fastest-growing AI coding startup, Windsurf, with a [$3 billion acquisition offer](https://techcrunch.com/2025/04/16/openai-is-reportedly-in-talks-to-buy-windsurf-for-3b-with-news-expected-later-this-week/), Bloomberg reported last week. While Windsurf is a comparatively smaller company, its ARR is about $100 million, up from [$40 million in ARR](https://techcrunch.com/2025/02/19/ai-coding-startup-codeium-in-talks-to-raise-at-an-almost-3b-valuation-sources-say/) in February, according to a source.

Windsurf has been gaining popularity with the developer community, too, and its coding product is designed to work with legacy enterprise systems. Windsurf did not respond to TechCrunch’s request for comment. OpenAI declined to comment on its acquisition talks.

Techcrunch event

### Join us at TechCrunch Sessions: AI

#### Secure your spot for our leading AI industry event with speakers from OpenAI, Anthropic, and Cohere. For a limited time, tickets are just $292 for an entire day of expert talks, workshops, and potent networking.

### Exhibit at TechCrunch Sessions: AI

#### Secure your spot at TC Sessions: AI and show 1,200+ decision-makers what you’ve built — without the big spend. Available through May 9 or while tables last.

Berkeley, CA|June 5

[REGISTER NOW](https://techcrunch.com/events/tc-sessions-ai/?promo=tc_inline_exhibit&utm_campaign=tcsessionsai2025&utm_content=exhibit&utm_medium=ad&utm_source=tc)

OpenAI is likely shopping because it’s looking for its next growth areas as competitors such as Google’s Gemini and China’s DeepSeek put pricing pressure on access to foundational models.

Moreover, [Anthropic](https://techcrunch.com/2025/02/24/anthropic-launches-a-new-ai-model-that-thinks-as-long-as-you-want/) and [Google have recently released AI models](https://techcrunch.com/2025/03/25/google-unveils-a-next-gen-ai-reasoning-model/) that outperform OpenAI’s models on coding benchmarks, increasingly making them a preferred choice for developers.

While OpenAI could build its own AI coding assistant, buying a product that is already popular with developers means the ChatGPT-maker wouldn’t have to start from scratch to build this business.

VCs who invest in developer tool startups are certainly watching. Speculating about OpenAI’s strategy, Chris Farmer, partner and CEO at SignalFire, told TechCrunch of the company, “They’ll be acquisitive at the app layer. It’s existential for them.”

Topics

[AI](https://techcrunch.com/category/artificial-intelligence/), [Anysphere](https://techcrunch.com/tag/anysphere/), [Exclusive](https://techcrunch.com/tag/exclusive/), [Mergers and Acquisitions](https://techcrunch.com/tag/mergers-and-acquisitions/), [OpenAI](https://techcrunch.com/tag/openai/), [Startups](https://techcrunch.com/category/startups/), [Venture](https://techcrunch.com/category/venture/), [Windsurf](https://techcrunch.com/tag/windsurf/)

![Image 4: Marina Temkin](https://techcrunch.com/wp-content/uploads/2024/03/Marina-Temkin.jpg?w=150)

Marina Temkin

Reporter, Venture

[](https://twitter.com/mtemkin)

Marina Temkin is a venture capital and startups reporter at TechCrunch. Prior to joining TechCrunch, she wrote about VC for PitchBook and Venture Capital Journal. Earlier in her career, Marina was a financial analyst and earned a CFA charterholder designation.

[View Bio](https://techcrunch.com/author/marina-temkin/)

![Image 5: Maxwell Zeff](https://techcrunch.com/wp-content/uploads/2024/07/Maxwell-Zeff.jpg?w=150)

Maxwell Zeff

Senior Reporter, Consumer

[](https://x.com/ZeffMax)

Maxwell Zeff is a senior reporter at TechCrunch specializing in AI and emerging technologies. Previously with Gizmodo, Bloomberg, and MSNBC, Zeff has covered the rise of AI and the Silicon Valley Bank crisis. He is based in San Francisco. When not reporting, he can be found hiking, biking, and exploring the Bay Area’s food scene.

[View Bio](https://techcrunch.com/author/maxwell-zeff/)

![Image 6: Event Logo](https://techcrunch.com/wp-content/uploads/2025/05/techcrunch-sessions-ai-small-logo.jpg)

June 5, 2025

Berkeley, California

LIMITED TIME: Save $300+ on your ticket, plus an additional 50% on a second for a full immersive day of AI! Hear from AI pioneers from Google DeepMind, OpenAI, Anthropic, and more on the main stage and in breakouts, and network like never before.

[REGISTER NOW](https://techcrunch.com/events/tc-sessions-ai/?utm_source=tc&utm_medium=ad&utm_campaign=tcsessionsai2025&utm_content=earlybirdbogo&promo=tceventssidebar_ebbogo&display=)

Most Popular
————

*
### [Discord seeks to solve a problem that it created](https://techcrunch.com/2025/05/23/discord-seeks-to-solve-a-problem-that-it-created/)

* [Amanda Silberling](https://techcrunch.com/author/amanda-silberling/)

*
### [OpenAI goes all in with Jony Ive as Google plays AI catchup](https://techcrunch.com/podcast/openai-goes-all-in-with-jony-ive-as-google-plays-ai-catchup/)

* [Theresa Loconsolo](https://techcrunch.com/author/theresa-loconsolo/)
* [Anthony Ha](https://techcrunch.com/author/anthony-ha/)
* [Kirsten Korosec](https://techcrunch.com/author/kirsten-korosec/)
* [Maxwell Zeff](https://techcrunch.com/author/maxwell-zeff/)

*
### [Digg founder Kevin Rose offers to buy Pocket from Mozilla](https://techcrunch.com/2025/05/23/digg-founder-kevin-rose-offers-to-buy-pocket-from-mozilla/)

* [Sarah Perez](https://techcrunch.com/author/sarah-perez/)

*
### [ChatGPT: Everything you need to know about the AI-powered chatbot](https://techcrunch.com/2025/05/23/chatgpt-everything-to-know-about-the-ai-chatbot/)

* [Kyle Wiggers](https://techcrunch.com/author/kyle-wiggers/)
* [Cody Corrall](https://techcrunch.com/author/cody-corrall/)
* [Alyssa Stringer](https://techcrunch.com/author/alyssa-stringer/)
* [Kate Park](https://techcrunch.com/author/kate-park/)

*
### [California prepares to sue feds after Senate revokes the state’s EV rule](https://techcrunch.com/2025/05/23/california-prepares-to-sue-feds-after-senate-revokes-the-states-ev-rule/)

* [Tim De Chant](https://techcrunch.com/author/tim-de-chant/)

*
### [At TechCrunch Sessions: AI, Artemis Seaford and Ion Stoica confront the ethical crisis — when AI crosses the line](https://techcrunch.com/2025/05/23/when-ai-crosses-the-line-artemis-seaford-and-ion-stoica-confront-the-ethical-crisis-at-techcrunch-sessions-ai/)

* [TechCrunch Events](https://techcrunch.com/author/techcrunch-events/)

*
### [X continues to suffer bugs following Thursday outage](https://techcrunch.com/2025/05/23/x-continues-to-suffer-bugs-following-thursday-outage/)

* [Kyle Wiggers](https://techcrunch.com/author/kyle-wiggers/)

Loading the next article

Error loading the next article

[![Image 7: TechCrunch Logo](https://techcrunch.com/wp-content/themes/tc-24/dist/svg/tc-logo.svg)](https://techcrunch.com/)
* [X](https://twitter.com/techcrunch)
* [LinkedIn](https://www.linkedin.com/company/techcrunch)
* [Facebook](https://www.facebook.com/techcrunch)
* [Instagram](https://instagram.com/techcrunch)
* [youTube](https://www.youtube.com/user/techcrunch)
* [Mastodon](https://mstdn.social/@TechCrunch)
* [Threads](https://www.threads.net/@techcrunch)
* [Bluesky](https://bsky.app/profile/techcrunch.com)

* [TechCrunch](https://techcrunch.com/)
* [Staff](https://techcrunch.com/about-techcrunch/)
* [Contact Us](https://techcrunch.com/contact-us/)
* [Advertise](https://techcrunch.com/advertise/)
* [Crunchboard Jobs](https://www.crunchboard.com/)
* [Site Map](https://techcrunch.com/site-map/)

* [Terms of Service](https://techcrunch.com/terms-of-service/)
* [Privacy Policy](https://techcrunch.com/privacy-policy/)
* [RSS Terms of Use](https://techcrunch.com/rss-terms-of-use/)
* [Code of Conduct](https://techcrunch.com/code-of-conduct/)

* [Anthropic](https://techcrunch.com/2025/04/30/anthropic-suggests-tweaks-to-proposed-u-s-ai-chip-export-controls/)
* [OpenAI](https://techcrunch.com/2025/04/29/openai-explains-why-chatgpt-became-too-sycophantic/)
* [Duolingo](https://techcrunch.com/2025/04/30/duolingo-launches-148-courses-created-with-ai-after-sharing-plans-to-replace-contractors-with-ai/)
* [Wikipedia](https://techcrunch.com/2025/04/30/__trashed-4/)
* [Hugging Face](https://techcrunch.com/2025/04/28/hugging-face-releases-a-3d-printed-robotic-arm-starting-at-100/)
* [Tech Layoffs](https://techcrunch.com/2025/02/28/tech-layoffs-2024-list/)
* [ChatGPT](https://techcrunch.com/2025/01/28/chatgpt-everything-to-know-about-the-ai-chatbot/)

![Image 8](https://pixel.wp.com/g.gif?v=ext&blog=136296444&post=2997417&tz=-7&srv=techcrunch.com&hp=vip&j=1%3A14.6&host=techcrunch.com&ref=&fcp=0&rand=0.393278900841207)

Some areas of this page may shift around if you resize the browser window. Be sure to check heading and document order.

AI Track Hub

AI Track Hub

Why OpenAI wanted to buy Cursor but opted for the fast-growing Windsurf

You May Also Like

GitHub Copilot introduces new limits, charges for ‘premium’ AI models

Windsurf slashes prices as competition with Cursor heats up

Tabnine launches its code review agent