In a stunning turn of events, OpenAI’s anticipated acquisition of Windsurf has been scrapped! Instead, Google has swooped in to snatch up Windsurf CEO Varun Mohan, co-founder Douglas Chen, and several R&D team members, integrating them into their powerhouse, Google DeepMind.

Mohan and the newly recruited team will dive into revolutionary agentic coding initiatives, primarily focusing on the cutting-edge Gemini project. Interestingly, while Google secures a non-exclusive license for some of Windsurf's technology, they won't be gaining control or ownership of the company.

With this leadership shift, Windsurf’s business head Jeff Wang steps up as interim CEO, while Graham Moreno takes the reins as the new president. This restructuring signals a bold new chapter for Windsurf, aiming to capitalize on its achievements over the past four years.

Chris Pappas, a spokesperson for Google, expressed the company’s enthusiasm: "Gemini stands out as one of the premier models on the market. We’re eager to integrate top coding talent from Windsurf to escalate our advancements in agentic coding."

Both Mohan and Chen shared their excitement, stating, "Joining Google DeepMind alongside part of our team is thrilling. We are incredibly proud of what we've built at Windsurf and look forward to propelling its legacy with Google’s elite resources."

Though the financial specifics of this talent acquisition remain under wraps, reports previously hinted at a staggering $3 billion price tag for OpenAI's initial bid to secure Windsurf. What a rollercoaster ride in the world of AI innovation!