Meta Opens First Physical Store

A man experiences the Quest 2 virtual headset during a preview of the Meta Store in Burlingame, Calif., Wednesday, May 4, 2022. (AP)
A man experiences the Quest 2 virtual headset during a preview of the Meta Store in Burlingame, Calif., Wednesday, May 4, 2022. (AP)
TT
20

Meta Opens First Physical Store

A man experiences the Quest 2 virtual headset during a preview of the Meta Store in Burlingame, Calif., Wednesday, May 4, 2022. (AP)
A man experiences the Quest 2 virtual headset during a preview of the Meta Store in Burlingame, Calif., Wednesday, May 4, 2022. (AP)

Facebook parent Meta has opened its first physical store - in Burlingame, California - to showcase its hardware products like virtual and augmented reality goggles and glasses.

The store, which is open to the public as of Monday, is made for people who want to test out products like Ray-Ban Stories, Meta’s AR glasses and sunglasses, along with the Portal video calling gadget and Oculus virtual reality headsets.

Shoppers still have to order the glasses from Ray-Ban but can buy the other products at the store.

"It’s a very concrete step from moving away from social media and ads that mislead people and elections and spying and data and all those things to a very physical representation of clean, classy, well-designed, cool hardware that makes you go, ah," said Omar Akhtar, research director at Altimeter, a technology investment firm.

Akhtar said he "didn’t believe in virtual reality" until he sat and tried on the Oculus headset for the first time - and believes this will be the same for others who are able to put on the goggles and try it out. Apple pioneered physical retail stores in Silicon Valley and Meta, which owns Instagram and Facebook, is likely hoping it'll replicate at least some of that success.

"The truth of it is that physical things never went away and they’re never going to go away," Akhtar said. "Everybody realizes that even if we are going to step into the virtual world, we’re going to need to access it with hardware."



Google Hires Windsurf Execs in $2.4 Billion Deal to Advance AI Coding Ambitions

FILE PHOTO: A Google logo is seen at a company research facility in Mountain View, California, US, May 13, 2025. REUTERS/Carlos Barria/File Photo
FILE PHOTO: A Google logo is seen at a company research facility in Mountain View, California, US, May 13, 2025. REUTERS/Carlos Barria/File Photo
TT
20

Google Hires Windsurf Execs in $2.4 Billion Deal to Advance AI Coding Ambitions

FILE PHOTO: A Google logo is seen at a company research facility in Mountain View, California, US, May 13, 2025. REUTERS/Carlos Barria/File Photo
FILE PHOTO: A Google logo is seen at a company research facility in Mountain View, California, US, May 13, 2025. REUTERS/Carlos Barria/File Photo

Alphabet's Google has hired several key staff members from AI code generation startup Windsurf, the companies announced on Friday, in a surprise move following an attempt by its rival OpenAI to acquire the startup.

Google is paying $2.4 billion in license fees as part of the deal to use some of Windsurf's technology under non-exclusive terms, according to a person familiar with the arrangement. Google will not take a stake or any controlling interest in Windsurf, the person added.

Windsurf CEO Varun Mohan, co-founder Douglas Chen, and some members of the coding tool's research and development team will join Google's DeepMind AI division, Reuters reported.

The deal followed months of discussions Windsurf was having with OpenAI to sell itself in a deal that could value it at $3 billion, highlighting the interest in the code-generation space which has emerged as one of the fastest-growing AI applications, sources familiar with the matter told Reuters in June.

OpenAI could not be immediately reached for a comment.

The former Windsurf team will focus on agentic coding initiatives at Google DeepMind, primarily working on the Gemini project.

"We're excited to welcome some top AI coding talent from Windsurf's team to Google DeepMind to advance our work in agentic coding," Google said in a statement.

The unusual deal structure marks a win for backers for Windsurf, which has raised $243 million from investors including Kleiner Perkins, Greenoaks and General Catalyst, and was last valued at $1.25 billion one year ago, according to PitchBook.

Windsurf investors will receive liquidity through the license fee and retain their stakes in the company, sources told Reuters.

'ACQUIHIRE' DEALS

Google's surprise swoop mirrors its deal in August 2024 to hire key employees from chatbot startup Character.AI.

Big Tech peers, including Microsoft, Amazon and Meta, have similarly taken to these so-called acquihire deals, which some have criticized as an attempt to evade regulatory scrutiny.

Microsoft struck a $650 million deal with Inflection AI in March 2024, to use the AI startup's models and hire its staff, while Amazon hired AI firm Adept's co-founders and some of its team last June.

Meta took a 49% stake in Scale AI in June in the biggest test yet of this increasing form of business partnerships.

Unlike acquisitions that would give the buyer a controlling stake, these deals do not require a review by US antitrust regulators. However, they could probe the deal if they believe it was structured to avoid those requirements or harm competition. Many of the deals have since become the subject of regulatory probes.

The development comes as tech giants, including Alphabet and Meta, aggressively chase high-profile acquisitions and offer multi-million-dollar pay packages to attract top talent in the race to lead the next wave of AI.

Windsurf's head of business, Jeff Wang, has been appointed its interim CEO, and Graham Moreno, vice president of global sales, will be president, effective immediately.

The majority of Windsurf's roughly 250 employees will remain with the company, which has announced plans to prioritize innovation for its enterprise clients.