"$3B" should be in heavy quotes if this is paid in OpenAI shares.
OpenAI reaches agreement to buy Windsurf for $3B
41–50 of 604 posts
Re: OpenAI reaches agreement to buy Windsurf for $3B
#42Windsurf and Cursor feel like temporary stopgaps, products of a narrow window in time before the landscape shifts again. Microsoft has clearly taken notice. They're already starting to lock down the upstream VSCode codebase, as seen with recent changes to the C/C++ extension [0]. It's not hard to imagine that future features like TypeScript 7.0 might be limited or even withheld from forks entirely. At the same time,…
> At the same time, Microsoft will likely replicate Windsurf and Cursor's features within a year. And deliver them with far greater stability and polish. We've seen this before with Office. We'll see it again.
...as done with Teams.
Microsoft Build is this month [0] and it will tell where they are going next (other than price cuts).
I'm expecting disappointment for now, but also expecting GitHub Copilot to be upgraded. Then we'll see if they are ahead or so far behind.
Re: OpenAI reaches agreement to buy Windsurf for $3B
#43$3B for a fork of an IDE which Microsoft keeps crippling by the day by making it's best extensions not work with forks (eg. C++, Python, C#, Remote SSH, etc)..
That's a oversimplified view. It doesn't matter if it's a fork. It has customers and paying ones. And it has a brand. That's more than enough. $3 billion would be peanuts for OpenAI
VSCode must have over 100 times the user base of Windsurf and Cursor combined. All Microsoft needs to do is implement a halfway decent version of the context management features these forks added. That alone would be enough to halt user migration.
For users who've already switched to the forks, the cost of switching back is essentially zero, especially if Microsoft begins introducing changes that break fork compatibility. In that case, the migration direction would reverse almost overnight.
Re: OpenAI reaches agreement to buy Windsurf for $3B
#44Windsurf and Cursor feel like temporary stopgaps, products of a narrow window in time before the landscape shifts again. Microsoft has clearly taken notice. They're already starting to lock down the upstream VSCode codebase, as seen with recent changes to the C/C++ extension [0]. It's not hard to imagine that future features like TypeScript 7.0 might be limited or even withheld from forks entirely. At the same time,…
> At the same time, Microsoft will likely replicate Windsurf and Cursor's features within a year. And deliver them with far greater stability and polish. We've seen this before with Office. We'll see it again.
They don't even need to be good - just in the bundle you (your company) are already paying for and the competition can't compete.
Re: OpenAI reaches agreement to buy Windsurf for $3B
#45Windsurf and Cursor feel like temporary stopgaps, products of a narrow window in time before the landscape shifts again. Microsoft has clearly taken notice. They're already starting to lock down the upstream VSCode codebase, as seen with recent changes to the C/C++ extension [0]. It's not hard to imagine that future features like TypeScript 7.0 might be limited or even withheld from forks entirely. At the same time,…
I mean, the fact that OpenAI, at the bleeding edge of it all, has decided to buy an IDE is a rather strong hint that the future of agents handling entire engineering tickets might be further out than many believe.
If autonomous agents were just around the corner, then why wouldn't OpenAI bet on their own Codex product obviating (most) need for an IDE and save themselves the $3 billion?
Re: OpenAI reaches agreement to buy Windsurf for $3B
#46Windsurf and Cursor feel like temporary stopgaps, products of a narrow window in time before the landscape shifts again. Microsoft has clearly taken notice. They're already starting to lock down the upstream VSCode codebase, as seen with recent changes to the C/C++ extension [0]. It's not hard to imagine that future features like TypeScript 7.0 might be limited or even withheld from forks entirely. At the same time,…
"riddled with bugs". "incredibly poorly implemented". Man, what are you talking about? Your comment seems based on nothing but what you read online.
Have you used Cursor on a daily basis? I have. Every day for six months now. I haven't encountered a single bug that prevent me to work.
Moreover, while Microsoft tries to catch up lately, it's still very far behind, especially on the "tab autocompletion" front.
Re: OpenAI reaches agreement to buy Windsurf for $3B
#47[flagged]
Re: OpenAI reaches agreement to buy Windsurf for $3B
#48This may end up saving openAI. their models have no moat
The companies they are buying have even less moat than openAi
Re: OpenAI reaches agreement to buy Windsurf for $3B
#49Earlier quoted context omitted.
given that they lose >$4B/year I guess everything is peanuts
OpenAI have $40 billion in funding from SoftBank for the next two years, so they can afford to buy Windsurf. Is OpenAI worth the $260 billion valuation... No, of course not, they're losing >$4 billion a year.
That $40 billion is actively being spent being lit on fire to serve all the ChatGPT requests though. It's not just sat in the bank doing nothing.
Re: OpenAI reaches agreement to buy Windsurf for $3B
#50Windsurf probably sees this as a win. I still think they're behind in some areas, Cursor's Agent feels faster and more responsive but Windsurf nails the rest. The documentation is far better, and the overall developer experience is more solid. Cursor still feels like a hacked-on plug-in in a broken VS Code fork. Even small touches, like built-in Linux install instructions, show Windsurf's polish.
Of course it's a win, dude that cloned a GitHub repo is now personally a billionaire