Why OpenAI wanted to buy Cursor but opted for the fast-growing Windsurf

Tech Crunch - Apr 22nd, 2025
Open on Tech Crunch

Anysphere, the creator of the AI coding assistant Cursor, is experiencing rapid growth, making it uninterested in acquisition offers, even from major players like OpenAI. Reports indicate that Cursor's revenue has been doubling every two months, contributing to Anysphere's impressive annual recurring revenue of approximately $300 million. Despite early acquisition discussions initiated by OpenAI, Anysphere has opted to remain independent and is now in talks to raise capital with a valuation of around $10 billion. OpenAI, meanwhile, continues its pursuit of AI coding startups and has expressed interest in Windsurf, offering a $3 billion acquisition for the company, which has seen its ARR grow from $40 million to $100 million.

Anysphere's decision to reject acquisition offers underscores its confidence in continued growth and market position within the AI coding tools sector. OpenAI's aggressive acquisition strategy reflects the increasing competition it faces from companies like Google and Anthropic, whose AI models are outperforming OpenAI's in coding benchmarks. By seeking to acquire established AI coding tools, OpenAI aims to solidify its foothold without starting from scratch. This strategic move is critical as foundational model competition intensifies, and venture capitalists closely watch the evolving landscape of developer tools, with OpenAI likely to remain aggressive in acquiring applications to maintain its competitive edge.

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RATING

6.8
Fair Story
Consider it well-founded

The article provides a detailed look at the competitive dynamics and strategic decisions of major players in the AI industry, particularly focusing on Anysphere and OpenAI. It offers valuable insights into business strategies and market trends, supported by reputable sources like TechCrunch and Bloomberg. However, the reliance on unnamed sources for some claims introduces a degree of uncertainty, affecting the overall accuracy.

While the article is timely and relevant to the tech and business communities, it could benefit from a more balanced perspective that includes viewpoints from developers or end-users of AI tools. The narrative is primarily business-focused, which may limit its appeal to a broader audience.

Overall, the article is well-written and engages its target audience effectively, but it could enhance its impact and engagement by exploring broader societal implications and including more diverse perspectives. Despite these limitations, it remains a valuable piece for those interested in the strategic maneuvers of leading AI companies.

RATING DETAILS

7
Accuracy

The story presents several factual claims that are generally supported by cited sources, such as TechCrunch and Bloomberg. For instance, it claims that Anysphere's AI coding assistant Cursor is growing rapidly, with its revenue doubling every two months and an annual recurring revenue of about $300 million. These figures are attributed to sources close to the company, which lends some credibility but still requires verification due to the lack of direct evidence or official statements.

The claim about Anysphere's valuation talks at $10 billion is attributed to Bloomberg, a reputable source, which enhances its credibility. However, the story also includes speculative elements, such as OpenAI's strategic motivations and acquisition strategies, which are supported by expert opinions rather than hard data. This blend of factual reporting and speculation affects the overall accuracy score.

There are potential inaccuracies or at least areas needing further verification, such as the exact number of startups OpenAI approached before focusing on Windsurf and the precise details of acquisition offers Anysphere received. These claims are based on unnamed sources, which, while common in business reporting, necessitate cautious interpretation.

6
Balance

The article primarily focuses on the business strategies and growth of Anysphere and OpenAI, with significant emphasis on their financial and strategic maneuvers. It presents the perspective of Anysphere's decision to remain independent and OpenAI's acquisition strategy, but it lacks the viewpoint of other stakeholders, such as developers using these AI tools or competitors in the AI coding space.

The narrative is skewed towards the business and investment aspects, with little attention to the potential implications for users or the broader AI industry. This creates an imbalance, as the story could benefit from a more comprehensive exploration of how these strategic decisions impact the end-users or the market dynamics.

Furthermore, while it mentions the competitive pressures from companies like Google and Anthropic, it doesn't delve deeply into how these pressures affect the broader AI landscape, thus omitting a potentially important perspective.

7
Clarity

The article is generally clear and well-structured, presenting its main points in a logical sequence. The language is straightforward and accessible, making it easy for readers to follow the narrative about Anysphere's growth and OpenAI's acquisition strategies.

However, the article could improve clarity by providing more context around technical terms or industry-specific jargon, such as 'annual recurring revenue' or 'foundational models,' which may not be immediately clear to all readers. Providing brief explanations or definitions would enhance understanding without detracting from the story's flow.

The tone remains neutral, focusing on delivering information rather than opinions, which aids in maintaining clarity. Yet, the inclusion of speculative elements about OpenAI's motivations might confuse readers about the distinction between confirmed facts and informed conjecture.

8
Source quality

The article references reputable sources such as TechCrunch, Bloomberg, and CNBC, which are well-regarded in the tech and business reporting sectors. These sources generally enhance the credibility of the information presented, particularly when discussing financial figures and strategic business decisions.

However, the reliance on unnamed sources, particularly those described as 'close to the company,' introduces some uncertainty. While it's common in business journalism to use such sources to protect confidentiality, it does mean that some claims cannot be independently verified, affecting the overall reliability.

Additionally, the article quotes Chris Farmer from SignalFire, providing an expert perspective on OpenAI's strategy. This adds depth to the analysis but doesn't fully compensate for the lack of direct statements from the companies involved, which would provide more authoritative insights.

6
Transparency

The article provides some transparency by citing specific sources like TechCrunch and Bloomberg for its claims, which allows readers to trace back the information to its origin. However, the use of unnamed sources for critical claims about Anysphere's growth and strategic decisions limits transparency.

The story does not explicitly discuss the methodology behind the claims, such as how revenue figures were obtained or verified, which would enhance transparency. Additionally, it does not disclose any potential conflicts of interest, such as relationships between the journalists and the companies involved, which could impact impartiality.

Overall, while the article does a decent job of attributing its claims to sources, the lack of detailed context or explanation about how some key figures were derived reduces its transparency score.

Sources

  1. https://theahura.substack.com/p/tech-things-openai-buys-windsurf
  2. https://techfundingnews.com/code-wars-openais-3b-bid-for-windsurf-puts-cursor-microsoft-and-anthropic-on-alert/
  3. https://devops.com/openai-in-talks-to-buy-windsurf-for-3-billion-report/
  4. https://beamstart.com/news/the-news-wars-will-tech-17453622706964
  5. https://beamstart.com/news/using-social-media-to-grow-17453622703303