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Google has struck a major deal in the race for top AI talent, hiring Varun Mohan, co-founder and CEO of Windsurf, in a move worth $2.4 billion.

The agreement also brings other key Windsurf team members—including co-founder Douglas Chen—into Google's DeepMind division.

Under the agreement, Google will not acquire Windsurf or take equity. Instead, it will pay licensing fees and compensation in exchange for a nonexclusive license to Windsurf's AI coding technology.

This also means Windsurf is free to license its tools to other companies if it chooses to.

"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. "We're excited to continue bringing the benefits of Gemini to software developers everywhere."

According to Vibe18, this move comes after OpenAI's unsuccessful bid to acquire Windsurf for $3 billion.

According to an OpenAI spokesperson, the deal didn't go through because the exclusivity period ran out.

Windsurf Surges Ahead in AI Space with Focus on Enterprise Impact

Now that Windsurf's Mohan and Chen are joining DeepMind, the company's head of business, Jeff Wang, has taken over as interim CEO.

He confirmed that most of Windsurf's current team will stay on to grow the company's core product. "Most of Windsurf's world-class team will continue to build the Windsurf product with the goal of maximizing its impact in the enterprise," Wang wrote on X.

Windsurf has become a rising name in AI coding, especially in the area of "vibe coding"—a more intuitive, AI-assisted way to write software, CNBC said.

This style of development has caught on with both coders and non-coders, giving Windsurf an edge in the crowded AI space.

The company's fast growth and innovative tech had also drawn the attention of OpenAI and investors looking to back the next big thing in AI development.

Google's approach—paying for talent and tech without full acquisitions—follows a pattern seen in other deals.

Last summer, Google hired people from Character.AI. Microsoft and Amazon have made similar moves with AI startups like Inflection and Adept.

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