GM! Welcome to Get Into AI.
I’m your AI news sherpa. Guiding you through the mountains of news to get to the good bit.
Here’s what I have for today:
OpenAI acquires Windsurf for $3 billion
Gemini 2.5 Pro gets a significant upgrade
Cursor raises $900M at $9B valuation
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Alright, let’s dive in!
Three major headlines
Three main stories for the day.
1/ OpenAI Scoops Up Windsurf for $3B
OpenAI has reportedly reached an agreement to acquire startup Windsurf for $3 billion.
This acquisition marks the first major "AI wrapper" unicorn exit, happening just as Cursor closes its $900m round at a $9b valuation.
While the Bloomberg report indicates the deal isn't finalized yet, it's sending shockwaves through the AI dev tool ecosystem.
Why it matters: Windsurf (better known as Codeium) has built impressive coding assistant technology that works across multiple AI models.
The high valuation suggests Windsurf possesses unique intellectual property, technology infrastructure, or talent that OpenAI deems difficult or time-consuming to replicate.
OpenAI might be less interested in Windsurf's technology and more interested in acquiring their user telemetry data to improve their own coding models.
This is basically like watching the popular kid buy the smartest kid's homework - sure it costs a lot, but instant A+ without doing the work yourself!
2/ Gemini 2.5 Pro Gets a Coding Glow-Up
Google has released an updated version of Gemini 2.5 Pro with significantly improved coding capabilities.
The updated Gemini 2.5 Pro now ranks #1 on the WebDev Arena leaderboard with a top arena score of 1420.
It's like Google just sent their AI to coding boot camp, and now it's flexing muscles we didn't even know it had. The competition is getting spicy!
3/ Cursor Secures $900M at $9B Valuation
As mentioned briefly above, Cursor closes its $900m round at a $9b valuation.
This massive funding round positions Cursor as a major player in the AI-powered development tool space, competing directly with giants like GitHub Copilot and now potentially with OpenAI's newly acquired Windsurf.
Why it matters: A related comment also notes that Cursor, presumably another tech startup, is now valued at $9 billion after raising $900 million. It underscores current high valuations in the AI sector.
This funding surge signals growing confidence in specialized AI dev tools despite the overall tech market slowdown.
It's like watching your neighborhood lemonade stand suddenly raise VC funding at unicorn status, except the lemonade is actually code and the stand is revolutionizing how developers work!
Catch you tomorrow! ✌️
That’s it for this week, folks! If you want more, be sure to follow our Twitter (@BarunBuilds)
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