Google Taps Windsurf Talent in $2.4 Billion Deal to Boost DeepMind Without Full Acquisition

In a surprising move, Google has hired key personnel from Windsurf, an AI code generation startup, as part of a broader strategy to bolster its DeepMind division. The deal comes amid growing interest in AI-driven coding tools, which are becoming a crucial frontier in artificial intelligence development.

While Google is not acquiring the company, it is paying $2.4 billion in licensing fees to use Windsurf’s technology under non-exclusive terms. The arrangement allows Windsurf to retain its independence, while giving Google access to some of its core innovations.

Google Secures Windsurf Talent for Gemini Project Without Full Acquisition or Control

Among those joining Google’s DeepMind are Windsurf CEO Varun Mohan, co-founder Douglas Chen, and several members of the R&D team. Their main focus at Google will be on agentic coding initiatives under the Gemini project, a key effort by Google to develop advanced AI tools.

This team transition follows months of discussions between Windsurf and OpenAI about a potential acquisition deal that could have valued Windsurf at around $3 billion. Those talks ultimately fell through, paving the way for Google to secure the team through this unique arrangement.

Unlike traditional acquisitions, this deal allows Windsurf to maintain operational autonomy while rewarding its investors with substantial liquidity. The $2.4 billion license fee gives investors a significant return without selling their equity in the company.

With backing from prominent investors like Kleiner Perkins, Greenoaks, and General Catalyst, Windsurf was last valued at $1.25 billion, making this licensing agreement a strong financial win for stakeholders. Google, meanwhile, benefits by gaining key talent and technology without regulatory hurdles.

Big Tech Embraces Acquihire Strategy to Gain AI Talent Without Triggering Acquisitions

This deal reflects a growing trend among Big Tech firms to use “acquihire” strategies—hiring top talent from startups without acquiring the companies outright. Google’s recent move mirrors similar deals made by Microsoft, Amazon, and Meta, which have employed similar tactics to build their AI capabilities while avoiding antitrust scrutiny.

Critics argue that these deals may be structured to skirt regulatory oversight, and some have already triggered investigations. Nevertheless, these tactics allow companies to move quickly in the hyper-competitive AI race.

While several executives have left, Windsurf remains operational and focused. Jeff Wang, previously head of business, has been named interim CEO, while Graham Moreno becomes president. The company plans to retain most of its 250 employees and continue innovating for its enterprise clients.

This partial transition allows Windsurf to remain competitive and independent, even as some of its top talent contributes to Google’s AI ambitions. The deal marks a pivotal moment in the evolving landscape of AI partnerships and talent acquisition.