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Google DeepMind has made a bold move in the AI race by bringing in top talent from Windsurf, the fast-growing AI coding startup once on track to be acquired by OpenAI.

Windsurf CEO Varun Mohan, co-founder Douglas Chen, and several key research and development team members are now officially part of Google DeepMind, where they will work on "agentic coding" as part of the Gemini project.

The hire is seen as a major step in strengthening Google's AI capabilities.

"We're excited to welcome some top AI coding talent from Windsurf's team to Google DeepMind to advance our work in agentic coding," a Google spokesperson said.

According to Reuters, this strategic talent hire comes after OpenAI's $3 billion acquisition deal with Windsurf fell through.

According to multiple reports, OpenAI had been negotiating to buy the startup, but with the exclusivity window closed, Windsurf shifted direction and struck a new path with Google.

Windsurf's Top Execs Join Google; Startup Keeps Most Staff

Google is not acquiring Windsurf or taking any equity in the company. However, it will receive a non-exclusive license to use some of Windsurf's technology.

This type of deal—known as a "reverse-acquihire"—allows Google to add high-value talent and tech without regulatory complications.

Windsurf, founded just four years ago, quickly became a major player in AI coding tools.

Its annual recurring revenue grew from $40 million to about $100 million in just a few months, making it one of the hottest startups in the space, TechCrunch said.

The rest of Windsurf will continue to operate independently. Jeff Wang, the company's head of business, has been named interim CEO, while Graham Moreno will take over as president.

Most of the company's 250 employees are staying on, with plans to keep focusing on enterprise clients.

"We are proud of what Windsurf has built over the last four years and are excited to see it move forward with their world-class team," Mohan and Chen said in a statement.

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