OpenAI Offers $3 Billion for Windsurf After Cursor’s $300M ARR Rebuff Amid $10B Anysphere Valuation

OpenAI pursued the acquisition of AI coding startups Windsurf and Cursor as part of its strategy to expand its presence in the AI coding assistant market. Initially, OpenAI considered acquiring Cursor, developed by Anysphere, which was experiencing rapid revenue growth with an annual recurring revenue (ARR) of $300 million. However, Anysphere declined the acquisition offer, opting to remain independent and pursue a capital raise at a $10 billion valuation. Subsequently, OpenAI shifted its focus to Windsurf, a fast-growing AI coding startup with a $100 million ARR, and reportedly offered $3 billion for the company. This move reflects OpenAI's interest in acquiring breakout applications built on its AI models. Additionally, AI coding workflows now integrate tools like Windsurf and Cursor with CodeRabbit’s AI agent, which assists in identifying security vulnerabilities, refactoring code, and debugging, enhancing developer productivity.