OpenAI is in discussions to acquire Windsurf, an AI coding tool, for around $3 billion, as it seeks to maintain its competitive edge in the generative AI sector against rivals like Google and Anthropic. This potential acquisition would mark OpenAI's largest to date, following a recent $40 billion funding round that elevated its valuation to $300 billion. Windsurf is gaining popularity among developers for its AI-driven coding assistance capabilities.

Anthropic has revoked OpenAI's access to its Claude API after discovering that OpenAI engineers were using Claude's coding tools, known for their effectiveness in creating web apps and performing infrastructure-related tasks. With the launch of GPT-5 imminent, it's speculated that Claude Code may have been utilized to enhance GPT-5's coding capabilities.

OpenAI explored acquiring Cursor, an AI code-writing application, before focusing on a potential $3 billion deal for Windsurf. Cursor, developed by Anysphere, has gained popularity for its coding assistance capabilities, drawing attention from major tech firms and investors. The competition in AI coding tools is intensifying, with Cursor reportedly having over one million daily users.