According to reports, OpenAI has agreed to buy Windsurf, an artificial intelligence-assisted coding tool formerly known as Codeium, for about $3 billion, marking the ChatGPT maker’s largest acquisition to date.

The deal has not yet closed, said the people, who spoke on condition of anonymity to discuss private matters.

The acquisition could help OpenAI take on rising competition in the market for AI-driven coding assistants — systems capable of tasks like writing code based on natural language prompting.

Windsurf, officially known as Exafunction Inc., has been negotiating with investors such as Kleiner Perkins and General Catalyst to secure funding at a valuation of $3 billion. Last year, General Catalyst led a deal that valued the company at $1.25 billion.

Anthropic, a competitor of OpenAI, and Github, owned by Microsoft Corp., provide developers with AI tools. Investors have also invested funds in a fresh wave of startups providing similar tools, such as Anysphere, the company responsible for Cursor.

OpenAI recently completed a $40 billion funding round, spearheaded by SoftBank Group Corp., which places the company's valuation at $300 billion. Following public opposition, OpenAI announced it was retracting its intentions to reorganize as a traditional for-profit entity.

OpenAI has abandoned its contentious strategy to transition into a for-profit organization following increasing pressure from detractors. CEO Sam Altman stated that OpenAI will continue to be governed by its original nonprofit board.

“We decided that the nonprofit should remain in control after discussions with civic leaders and consultations with the attorneys general's offices of California and Delaware,” Altman stated in an official OpenAI blog post revealing the recent restructuring decision.

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OpenAI started as a nonprofit, but since his brief and contentious departure from the renowned AI research lab in November 2023—a shakeup that unsettled Silicon Valley—Altman has been suggesting alterations to its organization.

Elon Musk, the CEO of Tesla and a co-founder of OpenAI, has previously criticized the organization and even initiated a lawsuit to halt the strategy, claiming Altman is focusing on expansion instead of the lab’s primary goal of developing technology for humanity’s advantage. Musk is currently in charge of OpenAI's xAI.