Alphabet’s Google has onboarded key members from AI code generation startup Windsurf, marking a strategic talent acquisition move that comes on the heels of rival OpenAI’s interest in buying the startup. The former Windsurf team will now join Google DeepMind, where they will contribute to the company’s agentic coding efforts—with a focus on its flagship Gemini AI project, a Google spokesperson confirmed on Friday.
“We’re excited to welcome some top AI coding talent from Windsurf’s team to Google DeepMind to advance our work in agentic coding,” said the spokesperson.
Windsurf Talent Joins DeepMind, Not an Acquisition
This development is not an acquisition. Instead, Google has entered a non-exclusive licensing agreement for select Windsurf technologies, according to a source familiar with the matter. The deal will not result in Google taking an equity stake in Windsurf, though early investors in the startup will receive liquidity as part of the arrangement.
The move mirrors a trend among Big Tech firms—acquihires—where companies hire core teams from AI startups without acquiring them outright. This structure often sidesteps regulatory scrutiny typically associated with full acquisitions.
OpenAI’s Attempt Blocked
Reuters had earlier reported that OpenAI was in talks to acquire Windsurf, one of the most closely watched startups in the AI-powered software development space. With Google stepping in, that potential deal has been sidelined.
OpenAI did not respond to requests for comment.
Windsurf to Continue as Independent Firm
Despite the exit of some key personnel, Windsurf will continue to operate independently. Jeff Wang, formerly head of business, has been appointed interim CEO, while Graham Moreno, VP of global sales, will take over as president. The company will retain a majority of its 250-member workforce and double down on enterprise innovation, according to sources.
AI Talent Wars Intensify
This move is part of a broader trend among tech giants looking to consolidate top AI talent amid intensifying competition in generative AI and software automation.
In recent months:
- Microsoft hired most of Inflection AI‘s team through a $650 million partnership.
- Amazon onboarded co-founders and key staff from Adept in a quiet acquihire.
- Meta took a 49% stake in Scale AI, fueling regulatory scrutiny.
These deals often fall outside the purview of traditional U.S. antitrust reviews, though regulators have begun examining whether such structures are intentionally designed to skirt oversight.
As AI races toward mainstream enterprise adoption, deals like Google’s with Windsurf could shape the future of code generation, intelligent agents, and next-gen productivity tools, cementing the strategic value of talent in the AI era.
