Why and how Microsoft may have ‘killed’ OpenAI’s $3 billion acquisition of WindSurf

OpenAI’s $3 billion agreement to buy the AI coding startup WindSurf has fallen apart. The highly-anticipated acquisition deal between artificial intelligence powerhouse OpenAI and AI coding startup Windsurf. OpenAI had reportedly been close to finalizing the deal to acquire Windsurf, formally known as Exafunction Inc., with a signed letter of intent and investor payout agreements (waterfall agreements) already in place. The acquisition was even nearing an announcement in early May, according to sources familiar with the discussions. However, an OpenAI spokesperson has confirmed that the exclusivity period for their offer has lapsed, leaving Windsurf free to explore other opportunities.