Google to pay $2.4 billion in deal to license tech of Windsurf, WSJ reports

Google has agreed to pay $2.4 billion to license Windsurf's AI-powered coding technology, according to Wall Street Journal reports. Windsurf assists programmers in writing and optimizing code, improving productivity. As part of the deal, Windsurf's CEO, co-founder, and key team members will join Google's DeepMind division. This significant investment reflects Google's commitment to maintaining leadership in artificial intelligence innovation, particularly in software development tools, amid growing competition in the AI space.

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.