OpenAI’s Big Move in AI Coding: Cursor, Windsurf, and What It Means for Founders

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OpenAI, the creator behind ChatGPT, is making strategic bets on the future of AI-driven software development. But before it started negotiating a $3 billion acquisition of AI coding startup Windsurf, it considered another option, Cursor.

Cursor, an AI-powered coding assistant, exploded in popularity last year. Built by the San Francisco-based startup Anysphere, Cursor integrates Anthropic’s advanced Claude 3.5 Sonnet model with Microsoft's widely-used open-source editor, Visual Studio Code. The result? A seamless, developer-friendly experience that quickly outpaced competitors—including, notably, Microsoft’s GitHub Copilot.

OpenAI first reached out to Anysphere in 2023. No deal emerged. This year, amid Cursor's accelerating user growth—more than 1 million daily active developers as of March—OpenAI reached out again. Still, conversations stalled, according to CNBC sources.

Now, Anysphere is independently aiming high. Bloomberg recently reported the company is raising funding at a valuation approaching $10 billion—remarkable growth for a startup founded just last year. The backing comes from heavyweight investors like Andreessen Horowitz, Benchmark, Thrive Capital, and even OpenAI’s own Startup Fund.

Meanwhile, OpenAI's strategic focus has shifted to Windsurf. The potential $3 billion acquisition would mark its largest-ever purchase. At the same time, CEO Sam Altman announced OpenAI’s latest coding-optimized models-o3 and o4-mini-alongside a new tool, Codex CLI, designed to make AI-assisted coding even more powerful.

The stakes are high.

Tech giants globally are investing billions into data centers packed with Nvidia GPUs, powering massive LLMs (Large Language Models). These models are reshaping industries far beyond software development—including customer service, sales, and even law. But software is where innovation is fastest, so much so that companies now worry about developers quietly using AI assistance to ace job interviews.

The industry shift was perfectly captured by OpenAI co-founder Andrej Karpathy, who earlier this year coined the term “vibe coding” to describe developers guiding AI models through natural instructions rather than traditional code-writing. Karpathy notably highlighted Cursor’s use of Anthropic’s Claude model—not OpenAI’s own tools—a subtle but telling endorsement.

Today, Cursor is part of a broader wave that includes rapidly-growing platforms like Bolt, Replit, and Vercel, capturing mindshare among developers looking for frictionless AI integration into their workflows.

OpenAI clearly senses the shift. The company has reportedly spoken to over 20 startups in the AI coding space, seeking to position itself at the core of the new developer stack.

What should founders watch here? The era of building software alone is fading. A new, collaborative AI-human model of software creation is emerging, fast. And the winners won't just provide better technology—they’ll shape how millions of developers bring ideas to life.

What Should Founders Watch Here?

1. Anchor Your AI in High‑Frequency Workflows

Cursor’s breakout success came from inserting AI directly into daily coding routines. OpenAI’s Codex CLI follows the same playbook—bringing AI into command‑line workflows. Founders should identify and embed their tools into developers’ most repeatable tasks - be it CI/CD pipelines, code reviews, or release scripts. When your AI becomes part of the “always‑on” workflow, it transcends novelty and becomes indispensable.

2. Blend Grassroots Traction with Strategic Partnerships

Cursor’s million‑user milestone didn’t happen in isolation; it rode developer word‑of‑mouth into enterprise pilots. OpenAI’s dual approach—first courting Cursor, then negotiating Windsurf - underscores that scale will come from both bottom‑up adoption and top‑down alliances. Founders should cultivate vibrant user communities while also engaging platform leaders early, so you can transition from GitHub stars to boardroom discussions without losing momentum.

3. Cultivate Developer Mindshare Before It Consolidates

Andrej Karpathy’s “vibe coding” mention of Cursor was more than a meme - it was a tacit endorsement that drove even more adoption. In today’s fragmenting AI landscape, establishing your tool as the go‑to, “everyone’s talking about it” solution creates a network effect that's hard to replicate. Founders need to seed organic advocacy - through workshops, open forums, or referral incentives - before larger players swoop in to consolidate market share.

4. Prepare for an Accelerating M&A Wave

OpenAI’s willingness to explore multi‑billion‑dollar deals is a clear harbinger of rapid consolidation. If you’re building an AI coding platform, assume that major players will be eyeing your domain soon. Architect your company for strategic alignment: expose clean APIs, document extensibility points, and maintain transparent roadmaps. When acquisition talks come, you’ll be positioned not as a bolt‑on feature but as a core enabler of the bigger ecosystem.

In less than a year, OpenAI’s dance between Cursor and Windsurf has outlined the contours of the next developer platform. Founders who heed these signals- embedding AI where it matters most, balancing organic growth with partnership plays, locking in developer mindshare, and readying for consolidation-will be the ones to define how software gets built in the AI era.