Mon. 07/14 – Google Snatches Windsurf From OpenAI

Jul 14, 2025 17m

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Google snatched the Windsurf acquisition out from under OpenAI in a big new acquihire. SpaceX is investing in xAI. ChromeOS and Android to merge, but for real this time? Was there a new sort of DeepSeek moment over the weekend? And example number 74 of how YouTube is now the king of video entertainment.

Links:

Google to Pay $2.4 Billion for Windsurf Staff, IP After Startup Ends OpenAI Talks (The Information)
Google Is Said to Pay $2.4 Billion for Windsurf Assets, Talent (Bloomberg)
An OpenAI Acquisition Turns Into a Google 'Hackqusition'... (Spyglass)
Elon Musk’s xAI seeks up to $200bn valuation in next fundraising (Financial Times)
SpaceX to Invest $2 Billion Into Elon Musk’s xAI (WSJ)
Google exec: ‘We’re going to be combining ChromeOS and Android’ (The Verge)
'I think you see the future first on Android' – Google's Android leader Sameer Samat (TechRadar)
Moonshot AI’s Kimi K2 outperforms GPT-4 in key benchmarks — and it’s free (VentureBeat)
Eight Things We’ve Learned About Hollywood This Year (Bloomberg)
The Streaming Wars Come Down to 2: YouTube vs. Netflix (NYTimes)

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AI-Generated Summary

Google Acquires Windsurf After OpenAI Talks Collapse

Google has stepped in to acquire Windsurf after OpenAI's protracted negotiation with the AI coding startup broke down. With the expiration of the exclusivity period on OpenAI's $3 billion offer, Google swiftly made a move, hiring Windsurf's key personnel to enhance their AI developments at DeepMind. This unconventional deal gives Google a $2.4 billion non-exclusive licensing agreement rather than a full acquisition, allowing Windsurf to continue licensing its technology to other parties. This development underscores the intense competition among tech giants for top AI talent and illustrates the precarious position OpenAI finds itself in amid its negotiations with Microsoft.

SpaceX's Bold Investment in XAI

Meanwhile, SpaceX has committed to investing $2 billion in Elon Musk's AI startup, xAI, in a move illustrating Musk's strategy to leverage his business empire for further growth in AI. This investment is part of a significant new fundraising effort targeting a staggering valuation of up to $200 billion. The combination of SpaceX's resources and Musk's ambition signals a determined push to compete with established AI players like OpenAI, setting the stage for a transformative shift in the field.

A Potential Merge of Chrome OS and Android

In another significant development, Google's president of Android hinted at a merger of Chrome OS and Android, a long-awaited move to streamline their operating systems. This consolidation could enhance user experience and accelerate development, but hints that this change has been rumored for years point to ongoing challenges in the competitive landscape against Apple's iPad.

Emergence of Kimi K2: A New AI Challenger

The Chinese AI startup Moonshot has introduced Kimi K2, a groundbreaking model that outperforms established giants like GPT-4 in key benchmarks. This new model's competitive pricing, efficiency in training, and capability for autonomous task completion could disrupt the market. The success of Kimi K2 reflects the ongoing innovator's dilemma and suggests a shift in AI development approaches that may favor smaller startups over entrenched incumbents.

YouTube vs. Netflix: The Changing Landscape of Streaming

Lastly, Nielsen data reveals a shift in the streaming landscape, with YouTube outpacing Netflix in television viewing time. As both platforms vie for dominance, Netflix still leads in generating hits, but YouTube's increasing share signals a transformative competition in media consumption that could reshape audience behavior and expectations.