Google has signed a $2.4bn licensing deal with Windsurf to enhance its AI development without acquiring ownership. Windsurf, a California-based AI code generation company, will allow Google to use specific technologies. Key Windsurf figures will join Google’s DeepMind division for agentic coding projects like Gemini.

This deal supersedes talks between Windsurf and OpenAI for a $3bn acquisition. Windsurf investors like Kleiner Perkins and General Catalyst will benefit from license fees while keeping their stakes. Interim leadership at Windsurf will be Jeff Wang as CEO and Graham Moreno as president, focusing on enterprise innovation.

Google’s approach of acquiring talent through licensing agreements, not acquisitions, aims to avoid regulatory scrutiny. Companies like Microsoft and Amazon have used similar strategies to boost their AI capabilities. Windsurf’s recent partnerships and product launches demonstrate its competitive edge in AI model development and software engineering.

The transaction between Google and Windsurf underscores the tech giant’s commitment to expanding its AI capabilities through strategic talent acquisitions. This deal highlights the growing trend among major tech companies to strengthen their AI expertise through innovative partnerships and agreements rather than traditional mergers and acquisitions.

Read more at Yahoo Finance: Google secures Windsurf talent in $2.4bn AI technology deal