OpenAI Eyed Cursor but Chose Windsurf Instead
Why Cursor Said No to OpenAI’s Acquisition Offer
Anysphere, the company behind the popular AI coding assistant Cursor, has been growing too fast to consider selling – even to tech giant OpenAI. According to sources close to the company, Cursor’s revenue has been doubling every two months, with current annual recurring revenue (ARR) reaching approximately $300 million.
Rapid Growth Makes Cursor Uninterested in Buyouts
The AI-powered coding tool has become so successful that it walked away from early acquisition talks with OpenAI. The company has also rejected other acquisition offers, choosing instead to maintain its independence. Anysphere is currently in discussions to raise capital at a staggering $10 billion valuation, demonstrating its confidence in continued growth.
OpenAI’s Strategic Shift to Windsurf
After failing to acquire Cursor, OpenAI turned its attention to Windsurf, another fast-growing AI coding startup. While smaller than Cursor with $100 million ARR (up from $40 million in February), Windsurf offers unique advantages:
- Growing popularity among developers
- Specialized compatibility with legacy enterprise systems
- Potential acquisition price tag of $3 billion
Why OpenAI Wants an Established Coding Tool
The ChatGPT maker’s shopping spree comes as competition intensifies in the AI development tools space. With rivals like Google’s Gemini and China’s DeepSeek applying pricing pressure, and new models from Anthropic and Google outperforming OpenAI on coding benchmarks, the company needs to expand its offerings.
As Chris Farmer, partner and CEO at SignalFire, observed: “They’ll be acquisitive at the app layer. It’s existential for them.” Rather than building from scratch, acquiring established products like Windsurf gives OpenAI immediate access to developer communities and proven technology.
The Future of AI-Assisted Coding
This acquisition activity highlights the strategic importance of AI-powered development tools in the tech landscape. While Cursor continues its independent growth trajectory, OpenAI’s potential Windsurf acquisition could reshape the competitive dynamics in this rapidly evolving sector.