Google hires Windsurf CEO and researchers to advance AI ambitions

Google has hired Windsurf CEO Varun Mohan, co-founder Douglas Chen, and key team members to join DeepMind, bolstering Google's AI capabilities particularly in agentic coding. This move ends rumors of OpenAI acquiring Windsurf (previously Codeium) for $3 billion. Google secured a non-exclusive technology license while Windsurf continues operating independently under interim leadership. Founded in 2021, Windsurf had achieved a $1.25 billion valuation after raising over $200 million.

Elon Musk's xAI is targeting a valuation of up to $200 billion in its upcoming fundraising round. Launched in 2023, the company's value has rapidly grown from $51 billion to $80 billion in early 2025. To compete with ChatGPT, Anthropic, and Google Gemini, xAI has invested heavily in infrastructure, including a supercomputer cluster with 200,000 Nvidia GPUs and plans for a larger system with one million Blackwell GPUs. The company is spending nearly $1 billion monthly, with projected 2025 expenses of $13 billion against just $500 million in expected revenue. Despite raising $14 billion total, xAI had only $4 billion in reserves as of March 2025, highlighting the substantial financial challenges facing its ambitious AI development plans.

Nvidia CEO Jensen Huang faces pressure from US lawmakers before his trip to China, where he'll attend the International Supply Chain Expo. After meeting with President Trump, Huang plans to meet Chinese officials amid tightening US export controls on advanced chips. Recent restrictions have significantly impacted Nvidia's financials, causing billions in losses. In response, Nvidia is launching the Blackwell RTX Pro 6000, designed to comply with export rules. US senators have warned Huang to adhere to American laws while pursuing business in China, highlighting the delicate balance technology companies must maintain between geopolitical tensions and commercial interests.

Moonshot AI has launched open-source model Kimi K2 to regain market position after losing ground to competitors like DeepSeek. Kimi K2 features enhanced coding capabilities and excels at agent tasks, reportedly rivaling top U.S. models. This release aligns with a broader trend of Chinese AI companies open-sourcing their models—including Alibaba, Tencent, and Baidu—to demonstrate technological prowess and expand global influence despite U.S. restrictions. Founded in 2023 by Yang Zhilin, Moonshot initially gained popularity with its Kimi application but saw declining usage by 2025. The K2 launch represents their strategic effort to reclaim leadership in China's competitive AI landscape.