OpenAI's $3 billion acquisition deal with Windsurf fell through, leading Windsurf CEO and co-founder to join Google's DeepMind.
Google paid $2.4 billion to license Windsurf's technology and hire its top employees, without taking a stake in the company.
Windsurf's current head of business, Jeff Wang, will become the interim CEO, while most of the 250-person team will continue offering AI coding tools for enterprise customers.
The deal represents a reverse-acquihire, where Google hires top talent and licenses technology, aiming to bolster its AI capabilities.