The AI coding startup, Windsurf, failed to sell to OpenAI and was subsequently bought by Google.

In February, Windsurf was in talks to raise a major financing at a $2.85 billion valuation led by Kleiner Perkins - double its valuation just six months earlier. But news broke in April that Windsurf was planning to sell itself to OpenAI for about $3 billion. This article analyzes the reasons behind the sale, highlighting the increased pressure on profit margins in the AI coding tools industry.