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OpenAI’s $3 billion deal with AI coding startup Windsurf collapses, as Google swoops in for licensing deal

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Google has struck a licensing deal with coding startup Windsurf, upending OpenAI’s $3 billion offer to acquire the startup after the clock on the deal’s exclusivity period expired.

The deal with Google means that Windsurf will continue to operate as an independent startup while key members of the team join Google, a source familiar with the matter told Fortune.

“We’re excited to welcome some top AI coding talent from Windsurf’s team to Google DeepMind to advance our work in agentic coding,” a Google spokesperson told Fortune in an emailed statement. The email also contained a statement from Windsurf founders Varun Mohan and Douglas Chen saying “We are excited to be joining Google DeepMind along with some of the Windsurf team.”

The news represents a setback for ChatGPT-maker OpenAI and comes as the generative AI startup has suffered talent raids from rivals like Meta. An OpenAI spokesperson confirmed to Fortune that the exclusivity period for the $3 billion acquisition deal with Windsurf, entered into in May, had expired, leaving Windsurf free to pursue other options.

AI coding startups, which use generative AI to assist programmers in writing code, have become one of the hottest categories in tech. Microsoft’s GitHub Copilot, built on OpenAI’s technology, has gained widespread adoption. In addition, Cursor, a startup backed by VCs like Thrive Capital, Accel, and Andreessen Horowitz, recently raised a $900 million Series C, hitting a $9 billion valuation.

Prior to making its bid for Windsurf, OpenAI had approached Anysphere about acquiring Cursor—but these discussions fell through as the startup wasn’t interested in being bought “even by OpenAI,” according to a report in TechCrunch.

Founded in 2021 by MIT classmates, and initially called Codeium, the startup changed its name to Windsurf in April, shortly before the OpenAI offer. The startup’s investors include Founders Fund, General Catalyst, Greenoaks, and Kleiner Perkins. TechCrunch reported in February that Windsurf was raising a funding round at a $2.85 billion valuation.

Introducing the 2025 Fortune 500, the definitive ranking of the biggest companies in America. Explore this year’s list.



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AI algorithms can detect vision problems years before they actually appear, says ZEISS India

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Artificial intelligence (AI) algorithms and other deep-technologies can help detect vision problems years before even any traces of their symptoms appear and therefore future of eye care and maintaining good eyesight would significantly rely on predictive and preventive innovations driven by robotics, GenAI and deep-tech, said ZEISS India, a subsidiary Carl Zeiss AG, the German optics, opto-electronics, and medical technology company.

Traditionally, eye scans relied heavily on human analysis and significant efforts required to analyse huge volumes of data. “However, AI proposes to aid clinical community with its ability to analyse huge volumes of data with high accuracy and helps detect anomalies at early stages of disease onset and thereby solving one of the biggest challenges in eye care, late detention, seen in emerging economies, including India,” Dipu Bose, Head, Medical Technology, ZEISS India and Neighbouring Markets told The Hindu.

For example, he said, conditions like diabetic retinopathy, glaucoma, or macular degeneration often begin with subtle changes in the retina. AI would be able to catch early indicators (even traces of these) years before the patients become aware of having any symptoms and take timely action to prevent irreversible blindness.

According to Mr. Bose, AI, as a well-trained partner, would be able to analyse thousands of eye images in seconds, with high degree of accuracy. It learns patterns by analysing massive datasets of eye scans and medical records, and it becomes smart enough to spot the tiniest changes/things that the human eye might miss.

Future innovation would rely significantly on predictive and preventive innovations for eye care, where technology would play an essential role in formulating solutions that would allow for earlier detection, more accurate diagnoses, and tailored treatments, he forcast adding Indian eyecare professionals were increasingly adopting new age technologies to ensure better patient outcomes. As a result, AI, Gen AI, robotics and deeptech were causing a significant shift in clinical outcomes, he observed.

“This is precisely why we call it preventive blindness. In India, this is becoming increasingly relevant as the majority of the population do not go for regular eye check-ups and they visit an eye doctor only when their vision is already affected,” Mr. Bose said.

Early intervention would lead to better outcomes: reduce inefficiencies and reduced healthcare costs, he said. “ZEISS contributes to this by advancing medical technologies for diagnosis, surgical interventions, and visualization, ultimately improving patient outcomes and quality of life,” he claimed.

For instance, ZEISS Surgery Optimiser App, an AI-powered tool that allows young surgeons to learn from uploaded and segmented surgery videos of experienced cataract surgeons. Similarly, in diagnostics, ZEISS is also leveraging AI through the Pathfinder solution, an integrated deep learning and AI-based support tool. These technologies can support eye care professionals in making data-driven decisions by visualising and analysing clinical workflows. They leverage real-time surgical data to help young clinicians identify variations, optimise surgical steps, and improve procedural consistency.

“These insight-driven technologies are expected to help bridge experience gaps, improve surgical confidence, and ultimately enhance patient outcomes across the country,” Mr. Bose anticipated.

However, he added, tackling unmet needs and ensuring early diagnosis of diseases would require a fundamental shift: from reactive care to proactive and precision-driven eye-care. “This means leveraging technology not just to treat but to predict, prevent, and personalise patient care before even the symptoms of the disease show up,” he further said.

The eye-tech market is growing in India. The ophthalmic devices market was $943.8 million in 2024 and is expected to reach $1.54 billion by 2033, growing at 5.23% CAGR. The global eye-tech market was valued at approximately $74.67 billion in 2024 and is projected to reach $110.33 billion by 2030 at a CAGR of 6.9%.

Published – September 06, 2025 11:21 am IST



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AI and cybersecurity: India’s chance to set a responsible global digital standard

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India’s digital economy is experiencing extraordinary growth, driven by government initiatives, private enterprise, and widespread technological adoption across users from diverse socio-economic backgrounds. Artificial intelligence (AI) is now woven into the fabric of organisational operations, shaping customer interactions, streamlining product development, and enhancing overall agility. Yet, as digitisation accelerates, the nation’s cyber risk landscape is also expanding—fuelled by the very AI innovations that are transforming business.

In a rapidly evolving threat landscape, human error remains a persistent vulnerability. A recent cybersecurity survey revealed that 65% of enterprises worldwide now consider AI-powered email phishing the most urgent risk they face. India’s rapidly growing digital user base and surging data volumes create an environment for increased risks.

Yet, there’s a strong opportunity for India to leverage its unique technical strengths to lead global conversations on secure, ethical, and inclusive digital innovation. By championing responsible AI and cybersecurity, the country can establish itself not only as a global leader but also as a trusted hub for safe digital solutions.

The case for a risk-aware, innovation-led approach

While AI is strengthening security measures with rapid anomaly detection, automated responses, and cost-efficient scalability, these same advancements are also enabling attackers to move faster and deploy increasingly sophisticated techniques to evade defences. The survey shows that 31% of organisations that experienced a breach faced another within three years, underscoring the need for ongoing, data-driven vigilance.

Globally, regulators are deliberating on ensuring greater AI accountability, frameworks with tiered risk assessments, data traceability, and demands for transparent decision-making, as seen in the EU AI Act, the National Institute of Standards and Technology’s AI Risk Management Framework in the US, and the Ministry of Electronics and Information Technology’s AI governance guidelines in India.

India’s digital policy regime is evolving with the enactment of the Digital Personal Data Protection Act and other reforms. Its globally renowned IT services sector, increasing cloud adoption, and digital solutions at population scale are use cases for nations to leapfrog in their digital transformation journey. However, there is a continued need for collaboration for consistent standards, regulatory frameworks, and legislation. This approach can empower Indian developers as they build innovative and compliant solutions with the agility to serve Indian and global markets.

Smart AI security: growing fast, staying steady

The survey highlights that more than 90% of surveyed enterprises are actively adopting secure AI solutions, underscoring the high value organisations place on AI-driven threat detection. As Indian companies expand their digital capabilities with significant investments, security operations are expected to scale efficiently. Here, AI emerges as an essential ally, streamlining security centres’ operations, accelerating response time, and continuously monitoring hybrid cloud environments for unusual patterns in real time.

Boardroom alignment and cross-sector collaboration

One encouraging trend is the increasing involvement of executive leadership in cybersecurity. More boards are forming dedicated cyber-risk subcommittees and embedding risk discussions into broader strategic conversations. In India too, this shift is gaining momentum as regulatory expectations rise and digital maturity improves.

With the lines between IT, business, and compliance blurring, collaborative governance is becoming essential. The report states that 58% of organisations view AI implementation as a shared responsibility between executive leadership, privacy, compliance, and technology teams. This model, if institutionalised across Indian industry, could ensure AI and cybersecurity decisions are inclusive, ethical, and transparent.

Moreover, public-private partnerships — especially in areas like cyber awareness, standards development, and response coordination — can play a pivotal role. The Indian Computer Emergency Response Team (CERT-In), a national nodal agency with the mission to enhance India’s cybersecurity resilience by providing proactive threat intelligence, incident response, and public awareness, has already established itself as a reliable incident response authority.

A global opportunity for India

In many ways, the current moment represents a calling to create the conditions and the infrastructure to lead securely in the digital era. By leveraging its vast resource of engineering talent, proven capabilities in scalable digital infrastructure, and a culture of economical innovation, India can not only safeguard its own digital future but also help shape global norms for ethical AI deployment. This is India’s moment to lead — not just in technology, but in trust.

This article is authored by Saugat Sindhu, Global Head – Advisory Services, Cybersecurity & Risk Services, Wipro Limited.

Disclaimer: The views expressed in this article are those of the author/authors and do not necessarily reflect the views of ET Edge Insights, its management, or its members



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Nvidia says GAIN AI Act would restrict competition, likens it to AI Diffusion Rule

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If passed into law, the bill would enact new trade restrictions mandating exporters obtain licenses and approval for the shipments of silicon exceeding certain performance caps [File]
| Photo Credit: REUTERS

Nvidia said on Friday the AI GAIN Act would restrict global competition for advanced chips, with similar effects on the U.S. leadership and economy as the AI Diffusion Rule, which put limits on the computing power countries could have.

Short for Guaranteeing Access and Innovation for National Artificial Intelligence Act, the GAIN AI Act was introduced as part of the National Defense Authorization Act and stipulates that AI chipmakers prioritize domestic orders for advanced processors before supplying them to foreign customers.

“We never deprive American customers in order to serve the rest of the world. In trying to solve a problem that does not exist, the proposed bill would restrict competition worldwide in any industry that uses mainstream computing chips,” an Nvidia spokesperson said.

If passed into law, the bill would enact new trade restrictions mandating exporters obtain licenses and approval for the shipments of silicon exceeding certain performance caps.

“It should be the policy of the United States and the Department of Commerce to deny licenses for the export of the most powerful AI chips, including such chips with total processing power of 4,800 or above and to restrict the export of advanced artificial intelligence chips to foreign entities so long as United States entities are waiting and unable to acquire those same chips,” the legislation reads.

The rules mirror some conditions under former U.S. President Joe Biden’s AI diffusion rule, which allocated certain levels of computing power to allies and other countries.

The AI Diffusion Rule and AI GAIN Act are attempts by Washington to prioritise American needs, ensuring domestic firms gain access to advanced chips while limiting China’s ability to obtain high-end tech amid fears that the country would use AI capabilities to supercharge its military.

Last month, U.S. President Donald Trump made an unprecedented deal with Nvidia to give the government a cut of its sales in exchange for resuming exports of banned AI chips to China.



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