ET AI: ChatGPT maker OpenAI reaches agreement to buy startup Windsurf for $3 billion
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Good morning Reader, OpenAI has agreed to acquire startup Windsurf for $3 billion, while maintaining its non-profit status amid restructuring. In India, academics are exploring AI's potential, and JPMorgan reports AI-driven sales growth despite market challenges.
Meanwhile, the UAE and France are partnering on a groundbreaking 1-gigawatt AI data center. As China’s tech firms like DeepSeek and TikTok gain momentum, the landscape of enterprise software is also evolving with agentic AI influencing pricing and business models.

In today's newsletter:

  • ChatGPT maker OpenAI reaches agreement to buy startup Windsurf for $3 billion
  • The Troika: Focused R&D, energy sovereignty and values
  • Agentic AI reshaping enterprise software pricing, business models
  • From lab to launch? Academics across India explore the deeper potential of AI

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ChatGPT maker OpenAI reaches agreement to buy startup Windsurf for $3 billion

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OpenAI is set to acquire Windsurf, formerly Codeium, for around $3 billion—its largest deal yet. The acquisition may bolster OpenAI’s ability to compete in the growing market for AI-powered coding assistants — tools that can generate code from natural language instructions.

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The Troika: Focused R&D, energy sovereignty and values

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BVR Subrahmanyam and Debjani Ghosh of NITI Aayog outline three levers that can help India shape the era of intelligence, powered by AI.

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OpenAI's $3 Billion Acquisition of Windsurf Signals AI Coding Assistant Race

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The Pulse

OpenAI's acquisition of Windsurf for $3 billion marks a pivotal moment in the AI landscape, emphasizing the escalating competition in AI-powered coding tools. This move not only enhances OpenAI's capabilities but also reflects broader trends in tech innovation and market dynamics.

How it's happening

The acquisition is part of OpenAI's strategy to strengthen its position in the coding assistant market, where AI tools are increasingly replacing traditional coding methods. This shift is driven by advancements in natural language processing and machine learning, fostering a competitive environment among tech giants.

Key takeaways

  • OpenAI's acquisition of Windsurf is its largest deal to date.
  • The move aims to enhance OpenAI's offerings in AI coding assistants.
  • Competition in AI-powered tools is intensifying among tech companies.
  • Natural language processing advancements are reshaping coding practices.
  • This acquisition reflects broader trends in tech innovation and market strategies.

Notable actions

OpenAI's decision to acquire Windsurf highlights its commitment to leading the AI coding assistant market. As companies like JPMorgan leverage AI for sales boosts, the implications of this acquisition could reshape enterprise software dynamics and coding practices in the tech industry.

From lab to launch? Academics across India explore the deeper potential of AI

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Academics across India are exploring the deeper potential of AI, from making chips more efficient to applications of industrial AI. Swathi Moorthy & Prachi Verma find out if these moves are enough to power India’s ambitions in the global AI race.

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OpenAI to remain under non-profit control in change of restructuring plans

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OpenAI has decided to remain under the control of its non-profit entity, reversing earlier plans to adopt a for-profit governance structure. CEO Sam Altman said the for-profit arm will become a public benefit corporation, ensuring oversight stays with the non-profit amid regulatory discussions and civic leader feedback.

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Special picks of the day

OpenAI to remain under non-profit control in change of restructuring plansJPMorgan says AI helped boost sales, add clients in market turmoilDeepSeek, Temu, TikTok- China tech is starting to pull aheadUAE, France collaborate on 1-gigawatt AI data center in pioneering tech partnership

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  • A DOGE Recruiter Is Staffing a Project to Deploy AI Agents Across the US Government
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