In a move that has startled techies and stunned startup circles, Indian-origin coder Varun Mohan, founder of the AI startup Windsurf, has flatly rejected a jaw-dropping ₹25,794 crore ($3 billion) acquisition offer from OpenAI. Yes, the ChatGPT people. Instead, he shook hands with none other than Google, opting for a humbler (but still massive) ₹20,633 crore ($2.4 billion) licensing deal.
It’s not every day that someone walks away from ₹25,794 crore. But then again, Varun Mohan is not your average zero-to-one story.
The Man Behind the Move
Born to Indian immigrant parents in Sunnyvale, California, Varun Mohan is a double graduate from MIT, holding both a Bachelor’s and Master’s in Electrical Engineering and Computer Science. After stints at industry giants like LinkedIn, Quora, Samsung, and Databricks, and a lead role at Nuro, Mohan co-founded Windsurf in 2021 with his MIT classmate, Douglas Chen.
What started as a college side project turned into a billion-dollar phenomenon.
So, What is Windsurf?
At its core, Windsurf is the company behind Cascade—an AI-native coding tool that lets developers write, edit, and refactor program code using simple voice or text commands. Think of it as Siri or Alexa, but for hardcore coders.
It’s not just for fun and flashy demos, either:
- Cascade signed up over a million developers in just months.
- The company raised $240 million from top VCs.
- It even landed on Forbes’ Top 50 AI Companies list.
Put simply: if you’re writing code, there’s now a smarter way to do it — and Windsurf is riding that wave.
OpenAI vs Google: The Tech Tussle
Here’s where it gets dramatic.
OpenAI wanted to buy Windsurf outright for ₹25,794 crore ($3B). But the deal fell apart when Microsoft—OpenAI’s key backer and proud parent of GitHub Copilot—raised concerns about, conflict of interest. Apparently, two copilots in one company is one too many.
While OpenAI was stuck in internal boardroom turbulence, Google swept in with an offer that made more sense: a licensing and collaboration deal worth ₹20,633 crore ($2.4B). Slightly less money, but major strings not attached.
Why Varun Said No to ₹25K Crore?
Yes, that question keeps popping up like your nosy relative during exam season. Here’s the short version:
- Independence: Google’s offer allows Windsurf to stay autonomous. It’s not being absorbed or dissolved—just empowered.
- Strategic Freedom: Windsurf can license Cascade to other companies too. A win-win.
- Better Cultural Fit: Google invited Varun and team to work on its Gemini AI platform, without asking them to give up their baby.
- Smooth Sailing: No red tape; no power struggle. Just business and bytes.
In what might be the ultimate flex, Varun kept control of his fast-growing company, boosted its valuation, and took a seat at Google’s AI leadership table—all without selling his soul (or his startup).
