Earlier quoted context omitted.
this is clearly the right take… it’s fun to semi-dunk on “how on earth is that the valuation”, but this is one of those rare cases where the tech and platform are genuinely more valuable in the hands of the acquirer than they ever could be in the hands of the acquiree. because i think windsurf has executed as well as one possibly could in the space, but openai is the SOTA model king, and i don’t see that changing any…
Minor nit: OpenAI is in a three way tie for SOTA models with Google and Anthropic. They are the king of marketing attention, studio Ghibli imitation, and consumer subscriptions, though.
Windsurf SWE-1: Our First Frontier Models
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Re: Windsurf SWE-1: Our First Frontier Models
#62Re: Windsurf SWE-1: Our First Frontier Models
#63We are paying for more "manageable" AI agents to get stuff done, not a chaotic "genius-hacker" to hack together quick prototypes.
Re: Windsurf SWE-1: Our First Frontier Models
#64So because they need to have a better business model, they will try to move users to weaker models compared to the best available? This "AI inside the editor" thing makes every day less sense in many dimensions: it makes you not really capable of escaping the accept, accept, accept trap. It makes the design interaction with the LLM too much about code and too little about the design itself. And you can't do what many…
I don't think they are targeting software engineers as users. They are seeking those on the software engineering margins, users who know what Python and for-loops are but don't care to configure Aider and review each of the overwhelming number of models released daily. They want to tell the editor to add function foo to bar.py. I suspect this latter market segment is much larger than the former!
Then the were the the MS Access and Excel amateur efforts. I worked at a company that for years had a very profitable business replacing in house MS Access spaghetti with our well designed application.
Aaaand..... here we go.... deja vu all over again....