OpenAI recently made headlines for its interest in purchasing an AI coding tool company. First, it approached Cursor, a fast-growing AI startup known for its coding assistant, but the deal never happened. The reason? Cursor’s parent company, Anysphere, decided to stay independent and is focused on growing even bigger on its own terms.
Now, let’s break down what happened, why Cursor turned down OpenAI, and why Windsurf became the new favourite.
Cursor turns down OpenAI’s offer
Cursor is one of the most popular AI tools for writing and improving code. It helps developers by making their work faster and more efficient. The company behind Cursor, Anysphere, is doing so well that it’s not interested in being bought — not even by a giant like OpenAI.
Sources close to Anysphere say the company’s revenue is growing quickly, doubling roughly every two months. Its annual recurring revenue (ARR) is currently around US$300 million. With numbers like that, it’s no surprise Anysphere is attracting attention.
According to insiders, OpenAI reached out to Anysphere to discuss buying Cursor. But those talks didn’t lead to a deal. Cursor has also turned down several offers from other companies. The main reason? Anysphere wants to stay independent and in control of its future. Instead of selling, the company is now in talks to raise more money and could soon be valued at around US$10 billion, according to a recent Bloomberg report.
Windsurf becomes OpenAI’s next big bet
After missing out on Cursor, OpenAI didn’t stop searching. It began looking into more than 20 other AI coding startups to find a good match. Eventually, it set its sights on Windsurf — another fast-growing company in the same space.
Bloomberg reported that OpenAI made a serious move by offering around US$3 billion to buy Windsurf. While Windsurf is smaller than Cursor, its numbers are still impressive. In February, Windsurf had US$40 million in annual recurring revenue. That has now grown to US$100 million, according to a source.
Windsurf is popular among developers, especially those working with older, large-scale business systems. Its coding tool works well with these legacy systems, which adds to its appeal. While Windsurf hasn’t officially commented on the talks, it’s gaining traction fast.
OpenAI also didn’t comment on its attempt to buy Windsurf or its previous interest in Cursor.
Why OpenAI is shopping for coding startups
So, why is OpenAI looking to buy an AI coding tool rather than building one from scratch? The answer is speed and strategy.
Right now, OpenAI faces tough competition from other tech giants like Google and Anthropic. Both companies have recently released new AI models that write code faster than OpenAI’s own systems. This means developers are starting to look elsewhere.
By buying an already successful coding tool, OpenAI can quickly gain ground without spending years developing something new. It’s a smart way to stay in the race and offer something developers want to use.
Chris Farmer, CEO of investment firm SignalFire says that OpenAI will likely keep buying software companies that already have users. “They’ll be acquisitive at the app layer. It’s existential for them,” he said.
With Cursor out of reach and Windsurf on the rise, OpenAI’s next move could shape the future of developers’ use of AI. Whether Windsurf agrees to the buyout or not, OpenAI is determined to stay ahead in the AI coding race.
