Google hires Windsurf CEO Varun Mohan, others in latest AI talent deal

Google hires Windsurf CEO Varun Mohan, others in latest AI talent deal

2025-07-13Technology
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Good morning 跑了松鼠, I'm David, and this is Goose Pod for you. Today is Sunday, July 13th.
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And I'm Ema. Today, we’re diving into a big move in the tech world: Google has hired Windsurf CEO Varun Mohan and others in a major AI talent deal.
1
Let's get started. This isn't a straightforward company purchase. Google is specifically hiring top AI coding talent, including Windsurf’s CEO and co-founder, to bolster its Google DeepMind team and advance its work on the Gemini models. It's a very targeted strike.
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Exactly! And they're getting a nonexclusive license to some of Windsurf's technology. Windsurf is known for its role in "vibe coding," which is a fun way of saying they use advanced AI to make writing complex software feel more intuitive and natural.
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This move fits into a much larger narrative: the AI talent war. This isn't Google's first "acqui-hire" either; they did something similar with Character.AI. It’s a strategy to absorb top-tier expertise without the complexities of a full acquisition, which can attract regulatory scrutiny.
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And the backstory here is fascinating! Before Google stepped in, Windsurf was reportedly in talks for a $3 billion acquisition by OpenAI. Can you imagine? But the deal fell apart, apparently due to a dispute with Microsoft over intellectual property rights.
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That’s the core of it. Microsoft, as a major partner with OpenAI, has access to its IP. They reportedly wouldn't exempt Windsurf's technology from that agreement. This created a stalemate, leaving a perfect opening for Google to make a different kind of deal.
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So, Google plays it smart! They don't buy the company, they hire the key players and license the tech. It’s like wanting the secret recipe and hiring the chef, instead of buying the whole restaurant. It's a clever way to navigate a tricky competitive landscape.
1
It's a strategic maneuver some are calling a "reverse acqui-hire." You avoid antitrust concerns while still capturing the valuable assets—in this case, the people. The best AI builders are now seen as more valuable than the companies they create, which is a huge shift.
2
It really is a battlefield for talent. You have Meta making massive offers to poach researchers from OpenAI. I read OpenAI’s CEO, Sam Altman, even commented that "missionaries will beat mercenaries," which is a pretty direct shot at companies trying to buy loyalty.
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The tension is palpable. Every major player—Google, Meta, Microsoft, OpenAI—is fighting for the same small pool of elite AI developers. This isn't just about building the next cool feature; it's about securing the architects of the future of technology. It's a high-stakes game.
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And it drives salaries and valuations sky-high! Windsurf went from $10 million to $40 million in revenue in just two years. That kind of growth, combined with the interest from giants like OpenAI and Google, shows just how intense the demand is.
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The immediate impact is that this deal significantly enhances Google's ability to build its own AI coding tools, directly competing with Microsoft's Copilot. As one analyst put it, "This isn’t just about writing code—it’s about owning how code gets written." That’s a powerful statement.
2
It really is. This also puts pressure on other companies. The deal signals that talent is the new platform. It’s not just about having the most data or the biggest models, but about having the brilliant minds who can innovate and push the boundaries of what's possible.
1
Looking ahead, this intense focus on talent will likely accelerate development. We're already seeing the evolution from simple prompt engineering to what's being called "context engineering"—managing the data and memory that AI models use. The required skills are constantly deepening and becoming more specialized.
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Which means that despite the billions invested in infrastructure, the human element remains the most critical variable in the AI race. The future will be shaped by the creativity and expertise of these teams.
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That's all the time we have for today's discussion. Thank you for listening to Goose Pod.
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We hope you enjoyed it. See you tomorrow!

## Google Hires Windsurf CEO Varun Mohan in Latest AI Talent Deal **Report Provider:** CNBC **Author:** Jordan Novet **Publication Date:** July 11, 2025 **Topic:** Artificial Intelligence (AI) Talent Acquisition ### Key Findings: Google has announced a significant move in the ongoing "AI talent wars" by reaching an agreement to bring **Varun Mohan**, the co-founder and CEO of AI coding startup **Windsurf**, to Google DeepMind. This deal also includes the hiring of other senior research and development employees from Windsurf. ### Deal Details and Implications: * **Talent Acquisition:** Google is acquiring key AI coding talent from Windsurf, specifically aiming to advance its work in "agentic coding." * **No Investment in Windsurf:** Google is not investing financially in Windsurf. * **Nonexclusive Technology License:** Google will obtain a nonexclusive license to certain Windsurf technologies. Windsurf will retain the freedom to license its technology to other entities. * **Focus on Gemini:** A Google spokesperson stated that the company is excited to continue bringing the benefits of its **Gemini** AI models to software developers. * **Windsurf's Future:** Windsurf's new interim CEO, Jeff Wang, indicated that most of Windsurf's team will continue to develop the Windsurf product, aiming to maximize its enterprise impact. * **Previous Acquisition Talks:** The deal with Google follows earlier discussions where Windsurf was reportedly in talks with **OpenAI** for a potential **$3 billion acquisition**. ### Context and Industry Trends: * **AI Talent War:** This acquisition highlights the intense competition for top AI talent among major tech companies. * **Competitor Activity:** * **Meta** has been actively recruiting OpenAI employees and notably added **Scale AI founder Alexandr Wang** to lead its AI strategy, backed by a **$14.3 billion investment** in his startup. * **Microsoft** is also heavily involved in AI, with CEO Satya Nadella stating that AI is composing as much as **30% of Microsoft's code**. Microsoft is also pushing an "agent mode" for "vibe coding" in its Visual Studio Code editor. * **"Vibe Coding":** Windsurf has gained popularity for its role in "vibe coding," a process that uses AI tools to write code. This trend has boosted revenue for companies like Windsurf and competitors such as **Cursor** (which OpenAI also considered acquiring). * **Startup Valuations:** The increased interest in AI coding startups has led investors to assign higher valuations to these companies. * **Precedent for Google:** This is not the first time Google has acquired talent from startups; they previously hired individuals from **Character.AI** last summer. Other companies like **Amazon** (with **Adept**) and **Microsoft** (with **Inflection**) have also absorbed AI talent through similar deals. ### Key Personnel Involved: * **Varun Mohan:** Co-founder and CEO of Windsurf, now joining Google DeepMind. * **Douglas Chen:** Co-founder of Windsurf, also joining Google. * **Jeff Wang:** Interim CEO and Head of Business at Windsurf. This strategic move by Google underscores its commitment to bolstering its AI capabilities, particularly in the rapidly evolving field of AI-assisted software development.

Google hires Windsurf CEO Varun Mohan, others in latest AI talent deal

Read original at CNBC

Chief executive officer of Google Sundar Pichai.Marek Antoni Iwanczuk | Sopa Images | Lightrocket | Getty ImagesGoogle on Friday made the latest a splash in the AI talent wars, announcing an agreement to bring in Varun Mohan, co-founder and CEO of artificial intelligence coding startup Windsurf.As part of the deal, Google will also hire other senior Windsurf research and development employees.

Google is not investing in Windsurf, but the search giant will take a nonexclusive license to certain Windsurf technology, according to a person familiar with the matter. Windsurf remains free to license its technology to others."We're excited to welcome some top AI coding talent from Windsurf's team to Google DeepMind to advance our work in agentic coding," a Google spokesperson wrote in an email.

"We're excited to continue bringing the benefits of Gemini to software developers everywhere."The deal between Google and Windsurf comes after the AI coding startup had been in talks with OpenAI for a $3 billion acquisition deal, CNBC reported in April. OpenAI did not immediately respond to a request for comment.

The move ratchets up the talent war in AI particularly among prominent companies. Meta has made lucrative job offers to several employees at OpenAI in recent weeks. Most notably, the Facebook parent added Scale AI founder Alexandr Wang to lead its AI strategy as part of a $14.3 billion investment into his startup.

Douglas Chen, another Windsurf co-founder, will be among those joining Google in the deal, Jeff Wang, the startup's new interim CEO and its head of business for the past two years, wrote in a post on X."Most of Windsurf's world-class team will continue to build the Windsurf product with the goal of maximizing its impact in the enterprise," Wang wrote.

Windsurf has become more popular this year as an option for so-called vibe coding, which is the process of using new age AI tools to write code. Developers and non-developers have embraced the concept, leading to more revenue for Windsurf and competitors, such as Cursor, which OpenAI also looked at buying.

All the interest has led investors to assign higher valuations to the startups.This isn't the first time Google has hired select people out of a startup. It did the same with Character.AI last summer. Amazon and Microsoft have also absorbed AI talent in this fashion, with the Adept and Inflection deals, respectively.

Microsoft is pushing an agent mode in its Visual Studio Code editor for vibe coding. In April, Microsoft CEO Satya Nadella said AI is composing as much of 30% of his company's code.The Verge reported the Google-Windsurf deal earlier on Friday.WATCH: Google pushes "AI Mode" on homepage

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