Google announced an agreement to hire Varun Mohan, co-founder and CEO of artificial intelligence coding firm Windsurf, making the most recent splash in the AI talent wars. 

This action is a component of a larger conflict between tech firms vying for the top AI expertise. 

Google is not investing in or purchasing Windsurf. Rather, it will grant a non-exclusive license for a portion of its technology, which allows Windsurf to continue sharing it with others.

OpenAI and Windsurf had previously discussed a potential $3 billion acquisition, but the deal fell through.

When questioned about this new agreement with Google, OpenAI remained silent. This agreement intensifies the fierce battle among large tech companies for AI recruiting.

Some OpenAI employees recently received generous job offers from Meta, Facebook's parent company, and Alexandr Wang, the inventor of Scale AI, was even appointed to head their AI strategy. His startup received $14.3 billion from Meta. According to sources, another Windsurf co-founder, Douglas Chen, is also joining Google as part of this agreement.

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Jeff Wang, who served as Windsurf's head of business for two years, is currently acting as temporary CEO. According to the reports, he stated that the majority of Windsurf's staff would remain with the company and carry on developing their product to assist businesses.

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In 2024, Windsurf gained notoriety for its efforts in "vibe coding," which involves writing code more simply with the use of new AI technologies. Both novices and developers are following this trend, which has increased Windsurf's earnings.

Other businesses are also becoming more well-known, such as Cursor, another coding AI startup. OpenAI contemplated purchasing Cursor as well. Investors are now valuing these AI businesses higher as a result of the increased interest. According to reports, Google has made similar hiring decisions in the past, such as with Character.AI last year.

In order to facilitate vibe coding, Microsoft has now introduced "agent mode" in Visual Studio Code. Microsoft CEO Satya Nadella stated in April that 30 percent of the company's code is currently generated by artificial intelligence.