A Bloomberg article claims that OpenAI has agreed to pay nearly $3 billion to purchase the AI-based coding tool Windsurf. The purchase of Windsurf (formerly Codeium) is still pending and would be ChatGPT’s largest acquisition if it were to be completed.
According to reports, Windsurf was in talks with Kleiner Perkins and General Catalyst to raise money at a $3 billion valuation before the OpenAI. In the meantime, a generative AI startup was valued at $1.25 billion last year, led by General Catalyst.
The Windsurf acquisition may enable OpenAI to produce a comparable offering to its competitors, Anthropic and Microsoft’s Github, who currently provide AI-based coding tools for programmers. Developers may write code more quickly, fix bugs, and analyze complex logic with the help of the latest generation of AI-based tools that let users write code in response to text prompts in natural language.
SoftBank of Japan just made a $40 billion investment in OpenAI, valuing the company at $300 billion.
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OpenAI maintains control through its nonprofit division:
In other related developments, OpenAI declared on Monday that it was abandoning its intention to restructure the company in order to take power away from the non-profit division. A Public Benefit Corporation (PBC) will replace OpenAI’s for-profit division under the new arrangement, although the non-profit organization will still possess significant ownership and influence.
“We’ll convert our for- profit LLC, which has been operating as a nonprofit since 2019, to a Public Benefit Corporation( PBC), a purpose- driven business structure that must take into account the charge and the interests of shareholders.” Sam Altman, CEO of OpenAI, stated in a blog post.
“We’re transitioning to a normal capital structure where everyone has stock, replacing our current complicated limited- profit structure, which made sense when it appeared that there might be one dominant AGI trouble but does not in a world of numerous great AGI companies.” He went on,” This is a change of structure to commodity simpler, not a trade.”
