OpenAI's Acquisition Choice: Windsurf Over Cursor

Anysphere's Independence Amidst Acquisition Interest

Anysphere, the company behind the AI coding assistant Cursor, is experiencing rapid expansion. A source familiar with the company indicates that it is not currently seeking a sale, even from a major player like OpenAI.

Cursor's Impressive Growth and Revenue

Cursor has become a highly sought-after AI-powered coding tool. Its revenue is reportedly increasing at a significant rate, approximately doubling every two months, according to an informed source.

Currently, Anysphere's average annual recurring revenue (ARR) is estimated to be around $300 million, as stated by two sources close to the company.

Previous Acquisition Discussions with OpenAI

Anysphere previously engaged in preliminary acquisition discussions with OpenAI. These talks were initiated when OpenAI approached Cursor, as confirmed by two sources. This information was also previously reported by CNBC.

The company also evaluated other acquisition proposals, but ultimately decided not to pursue them, according to one of the sources.

Focus on Remaining Independent and Raising Capital

The decision to decline offers stems from Anysphere’s desire to maintain its independence. Instead, the company is reportedly exploring options to raise capital at a valuation of approximately $10 billion, as reported by Bloomberg last month.

OpenAI's Pursuit of AI Coding Startups

Despite being unsuccessful with Anysphere, OpenAI continued its search for an established AI coding tool startup. CNBC reported that OpenAI engaged in discussions with over 20 other companies.

Subsequently, OpenAI made a $3 billion acquisition offer for Windsurf, another rapidly growing AI coding startup, as reported by Bloomberg last week.

Windsurf's Growth and Capabilities

While smaller in comparison, Windsurf’s ARR has grown from $40 million in February to approximately $100 million. This information comes from a source with knowledge of the matter.

Windsurf has gained traction within the developer community. Its coding product is specifically designed for integration with existing enterprise systems.

Neither Windsurf nor OpenAI responded to requests for comment from TechCrunch.

OpenAI's Strategic Motivations

OpenAI’s acquisition efforts are likely driven by a need to identify new avenues for growth. Increased pricing pressure from competitors like Google’s Gemini and China’s DeepSeek on access to foundational models is a contributing factor.

Competitive Landscape in AI Coding Models

Furthermore, Anthropic and Google have recently unveiled AI models that demonstrate superior performance to OpenAI’s models in coding benchmarks. This is leading developers to increasingly favor these alternative options.

Although OpenAI could develop its own AI coding assistant, acquiring an existing, popular product would allow the company to bypass the initial development stages.

Industry Observation and Expert Opinion

Venture capitalists investing in developer tool startups are closely monitoring these developments. Chris Farmer, partner and CEO at SignalFire, speculated on OpenAI’s strategy, stating that the company “will be acquisitive at the app layer” and that it is “existential for them.”

• Key Takeaway: Anysphere is prioritizing independent growth over acquisition, despite significant interest from OpenAI.
• Strategic Shift: OpenAI is actively seeking to acquire established AI coding tools to bolster its offerings.