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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
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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.

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Technology

Australia Begins Enforcing World-First Teen Social Media Ban 

Prime Minister Anthony Albanese and Minister for Communications Anika Wells stand during an event to mark the beginning of the social media ban for children under 16 years of age, at Kirribilli House in Sydney, Australia, December 10, 2025. (AAP/Mick Tsikas/via Reuters) 
Prime Minister Anthony Albanese and Minister for Communications Anika Wells stand during an event to mark the beginning of the social media ban for children under 16 years of age, at Kirribilli House in Sydney, Australia, December 10, 2025. (AAP/Mick Tsikas/via Reuters) 
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Australia Begins Enforcing World-First Teen Social Media Ban 

Prime Minister Anthony Albanese and Minister for Communications Anika Wells stand during an event to mark the beginning of the social media ban for children under 16 years of age, at Kirribilli House in Sydney, Australia, December 10, 2025. (AAP/Mick Tsikas/via Reuters) 
Prime Minister Anthony Albanese and Minister for Communications Anika Wells stand during an event to mark the beginning of the social media ban for children under 16 years of age, at Kirribilli House in Sydney, Australia, December 10, 2025. (AAP/Mick Tsikas/via Reuters) 

Australia on Wednesday became the first country to ban social media for children under 16, blocking access in a move welcomed by many parents and child advocates but criticized by major technology companies and free-speech advocates.

Starting at midnight (1300 GMT on Tuesday), 10 of the largest platforms including TikTok, Alphabet's YouTube and Meta's Instagram and Facebook were ordered to block children or face fines of up to A$49.5 million ($33 million) under the new law, which is being closely watched by regulators worldwide.

Prime Minister Anthony Albanese called it "a proud day" for families and cast the law as proof that policymakers can curb online harms that have outpaced traditional safeguards.

"This will make an enormous difference. It is one of the biggest social and cultural changes that our nation has faced," Albanese told a news conference on Wednesday.

"It's a profound reform which will continue to reverberate around the world."

In a video message, Albanese urged children to "start a new sport, new instrument, or read that book that has been sitting there for some time on your shelf," ahead of Australia's summer school break starting later this month.

In the hours before the ban took effect, many of the estimated one million children impacted by the legislation began posting messages saying goodbye to their online followers.

"No more social media... no more contact with the rest of the world," wrote one teen on TikTok.

"#seeyouwhenim16," said another.

BAN HAS GOBAL IMPLICATIONS

The rollout caps a year of debate over whether any country could practically stop children from using platforms embedded in daily life and begins a live test for governments worldwide frustrated that social media firms have been slow to implement harm-reduction measures.

Albanese's center-left government proposed the landmark law citing research showing harms to mental health from the overuse of social media among young teens, including misinformation, bullying and harmful depictions of body image.

Several countries from Denmark to New Zealand to Malaysia have signaled they may study or emulate Australia's model, making the country a test case for how far governments can push age-gating without stifling speech or innovation.

Julie Inman Grant, the US-born eSafety Commissioner who is overseeing the ban, told Reuters on Wednesday a groundswell of American parents wanted similar measures.

"I hear from the parents and the activists and everyday people in America, 'we wish we had an eSafety commissioner like you in America, we wish we had a government that was going to put tween and teen safety before technology profits,'" she said in an interview at her office in Sydney.

'NOT OUR CHOICE': X SAYS WILL COMPLY

Elon Musk's X became the last of the 10 major platforms to take measures to cut off access to underage teens after publicly acknowledging on Wednesday that it would comply.

"It's not our choice - it's what the Australian law requires," X said on its website.

"X automatically offboards anyone who does not meet our age requirements."

Australia has said the initial list of covered platforms would change as new products emerge and young users migrate.

Companies have told Canberra they will deploy a mix of age inference - estimating a user's age from their behavior - and age estimation based on a selfie, alongside checks that could include uploaded identification documents or linked bank account details.

For social media businesses, the implementation marks a new era of structural stagnation as user numbers flatline and time spent on platforms shrinks, studies show.

Platforms say they earn little from advertising to under-16s, but warn the ban disrupts a pipeline of future users. Just before the ban took effect, 86% of Australians aged eight to 15 used social media, the government said.

Some youngsters have warned the social media ban could isolate people.

"It's going to be worse for people with niche interests I guess because that's the only way they can find their community," said 14-year-old Annie Wang ahead of the ban.

"Some people also use it to vent their feelings and talk to people to get help ... So I feel like it'll be fine for some people, but for some people it'll worsen their mental health."

Technology

Microsoft Unveils $23 Billion in New AI Investments With Big Focus on India

Microsoft Chief Executive Satya Nadella speaks at the company's annual developer conference in Seattle, Washington, US, May 21, 2024. REUTERS/Max Cherney
Microsoft Chief Executive Satya Nadella speaks at the company's annual developer conference in Seattle, Washington, US, May 21, 2024. REUTERS/Max Cherney
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Microsoft Unveils $23 Billion in New AI Investments With Big Focus on India

Microsoft Chief Executive Satya Nadella speaks at the company's annual developer conference in Seattle, Washington, US, May 21, 2024. REUTERS/Max Cherney
Microsoft Chief Executive Satya Nadella speaks at the company's annual developer conference in Seattle, Washington, US, May 21, 2024. REUTERS/Max Cherney

Microsoft on Tuesday unveiled about $23 billion in new artificial intelligence investments, with the bulk earmarked for India as it deepens its bet on one of the world's fastest-growing digital markets.

As part of the move, Microsoft will spend $17.5 billion in India in its largest Asia investment to build out artificial intelligence infrastructure in the country, CEO Satya Nadella said.

The investment builds on the $3 billion investment Microsoft announced earlier this year. It would give the company the largest cloud presence in India, with the first new data center going live mid-2026.

Microsoft has pledged hefty investments worldwide this year, as the company races to secure more cloud computing capacity to meet the surging demand for AI workloads and compete better with rivals Amazon and Google-parent Alphabet.

Microsoft earlier in the day said it was investing more than C$7.5 billion ($5.42 billion) in Canada over the next two years.

New capacity under the investment will begin to come online in the second half of 2026, Microsoft said, adding that its total estimated investment in Canada amounts to C$19 billion between 2023 and 2027.

Microsoft also said it would expand its Azure Local cloud offering in Canada. It is also partnering with Canadian AI startup Cohere to offer the firm's advanced AI models on its Azure platform.

The company is also launching a dedicated "Threat Intelligence Hub" in Canada to focus on cybersecurity protection and AI security research, and work with the Canadian government and lawmakers to track threat actors and organized crime.

Microsoft currently has more than 5,300 employees across 11 cities in Canada.

Last month, Microsoft announced plans to invest $10 billion in AI infrastructure in Portugal as well as $15 billion in the United Arab Emirates.

Big Tech is under growing investor pressure to show that its hefty investments in AI are paying off, as surging valuations of companies and a web of circular investments fuel concerns of an AI bubble.

Microsoft reported a record capital expenditure of nearly $35 billion for its fiscal first quarter in October and warned that spending would further increase this year. It has predicted it would remain constrained on supply at least until the end of its current fiscal year in June 2026.

Technology

EU Launches Antitrust Probe into Google’s Use of Online Content for AI Purposes 

01 December 2025, Hamburg: The Google logo shines above the entrance to Google's German headquarters. (dpa)
01 December 2025, Hamburg: The Google logo shines above the entrance to Google's German headquarters. (dpa)
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EU Launches Antitrust Probe into Google’s Use of Online Content for AI Purposes 

01 December 2025, Hamburg: The Google logo shines above the entrance to Google's German headquarters. (dpa)
01 December 2025, Hamburg: The Google logo shines above the entrance to Google's German headquarters. (dpa)

The European Commission has opened an antitrust probe to assess whether Google is breaching EU competition rules in its use of online content from web publishers and YouTube for artificial intelligence purposes, it said on Tuesday.

"The investigation will notably examine whether Google is distorting competition by imposing unfair terms and conditions on publishers and content creators, or by granting itself privileged access to such content, thereby placing developers of rival AI models at a disadvantage," the Commission said.

It said it was concerned Google may have used content from web publishers to generate AI-powered services on its search results pages without appropriate compensation to publishers and without offering them the possibility to refuse such use of their content.

The Commission said it is also concerned whether Google has used content uploaded to YouTube to train its own generate AI models without offering creators compensation or the possibility to refuse.