Team siliconindia

• Google DeepMind has hired Windsurf CEO Varun Mohan, co-founder Douglas Chen, and key R&D staff to work on agentic coding and the Gemini project.
• The move comes after OpenAI’s unsuccessful attempt to acquire Windsurf, signaling intensifying competition in the AI coding space.
• Google gains a non-exclusive license to Windsurf’s tech without taking a stake, while most of Windsurf’s 250 employees remain, with new leadership appointed.

In a strategic move shaking up the AI coding landscape, Alphabet’s Google has hired top talent from Windsurf, a prominent AI code generation startup that was reportedly in acquisition talks with OpenAI. The move signals Google’s intent to double down on AI-driven software development through its DeepMind division.

Windsurf CEO Varun Mohan, Co-founder Douglas Chen, and several key members from the startup’s research and development team will now join Google DeepMind, where they will lead agentic coding initiatives particularly under the company’s ambitious Gemini project. The surprise hiring follows earlier reports of OpenAI’s failed attempt to acquire Windsurf.

“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 a Google spokesperson.

Though Google will not take an equity stake in Windsurf, it has secured a non-exclusive license to use certain Windsurf technologies, according to sources familiar with the arrangement. The deal also includes liquidity for Windsurf’s investors, despite the absence of a formal acquisition.

This 'acquihire' approach mirrors Google’s earlier hiring of key talent from Character.AI in August 2024. Tech giants like Microsoft, Amazon, and Meta have also embraced this trend seen as a way to bolster AI capabilities without triggering antitrust reviews. Notably, Microsoft struck a $650 million deal with Inflection AI, Amazon absorbed parts of Adept, and Meta took a 49% stake in Scale AI.

Regulators have taken notice, warning that such deals could be probed if deemed intentionally structured to avoid oversight or suppress competition.

Also Read: Google Cloud Names Sashikumar Sreedharan as India MD to Drive AI-Led Growth

Meanwhile, Windsurf has announced leadership changes, with Jeff Wang, Head of Business, stepping in as interim CEO, and Graham Moreno, VP of Global Sales, assuming the role of President. The company will retain most of its 250 employees and shift focus to advancing AI innovation for enterprise clients.

As AI dominance becomes the battleground for Big Tech, Google’s Windsurf talent acquisition marks a bold step in the intensifying race to shape the future of intelligent software.