Google, Porsche in Talks over Google Apps Access

This photo taken on August 23, 2018 shows the Google logo on display at the Smart China Expo at Chongqing International Expo Center in southwest China's Chongqing. (Getty Images)
This photo taken on August 23, 2018 shows the Google logo on display at the Smart China Expo at Chongqing International Expo Center in southwest China's Chongqing. (Getty Images)
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Google, Porsche in Talks over Google Apps Access

This photo taken on August 23, 2018 shows the Google logo on display at the Smart China Expo at Chongqing International Expo Center in southwest China's Chongqing. (Getty Images)
This photo taken on August 23, 2018 shows the Google logo on display at the Smart China Expo at Chongqing International Expo Center in southwest China's Chongqing. (Getty Images)

Google and Porsche are in talks over a possible deal to allow Google Apps to be used in Porsche cockpits, German business magazine Manager Magazin reported on Thursday, citing managers from both companies.

A focus of the deal would be access to Google Maps, the report added.

Spokespeople for Porsche and Google were not immediately available for comment. Porsche Chief Financial Officer Lutz Meschke said on a conference call last October that the company was in close contact with Google and Apple as well as Baidu, Tencent and Alibaba in China following the end of its cooperation with Volkswagen's Cariad unit on software research and development.

Porsche had previously been reluctant to use Google software because Google asked for too much data to be shared, according to Manager Magazin, even as Volkswagen brand Audi enabled its customers to connect their vehicles to Android phones. Reuters said.

Technology companies from Google to Apple and Amazon are in a race to control carmakers' dashboards as software becomes an integral part of car design.

Carmakers including General Motors, Renault, Nissan and Ford use embedded Google technology in their vehicles via a Google Automotive Services (GAS) package, offering features like Google Maps, Google Assistant and other applications.

Porsche managers travelled late in 2021 to the United States to discuss possible joint projects with iPhone maker Apple, whose CarPlay software already features in Porsche vehicles.

But some automakers are wary of allowing the tech giants unfettered access to the data generated by connected cars, or to allow them to displace the automakers' brands with their own in dashboard displays.

BMW, for example, was "definitely not taking the path" of integrating GAS into its cars, a spokesperson said on Thursday: "It is important to the company to keep hold of the customer interface," they said.

Porsche, which overtook its former parent as Europe's most valuable carmaker after listing on the stock exchange last September, reported earlier on Thursday a 3% rise in deliveries in 2022.



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
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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.