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.

OpenAI is reportedly negotiating to acquire Windsurf for $3 billion, following previous interest in Cursor. The acquisition aims to enhance AI integration in productivity tools, providing users with a more powerful workspace that can directly interact with files, track changes, and gain insights from data usage, amidst competition from Microsoft and GitHub Copilot.