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Key Developments in AI Talent Acquisition
On July 17, 2025, Alphabet Inc. (GOOGL) successfully acquired key personnel from the AI coding startup Windsurf for $2.4 billion, following a stalled acquisition attempt by OpenAI due to concerns from Microsoft (MSFT). Windsurf, which boasts over 1 million users and annual recurring revenue growing from $40 million to $100 million, specializes in code generation and agentic coding technology.
Alphabet’s deal included hiring Windsurf’s founder and other R&D team members to its DeepMind AI division and securing a non-exclusive technology license. This strategic move allowed Google to sidestep regulatory scrutiny associated with a full acquisition, thus enhancing its position in the competitive landscape of advanced AI development.
Shortly after, Cognition AI announced that it had acquired the remaining assets of Windsurf, including its intellectual property and core team, highlighting the intense competition for talent and technology in the AI sector.
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