Google Hires This Indian AI Team In A Massive Rs 20,000 Crore Deal—All You Need To Know

Alphabet’s Google has struck a major deal with AI code generation startup Windsurf, hiring several of its key staff members and securing rights to use some of its technology. The move comes shortly after rival OpenAI tried to acquire Windsurf in a deal reportedly worth $3 billion, according to Reuters report.

As part of the arrangement, Google is paying $2.4 billion (about Rs 20,400 crore) in license fees. The agreement is non-exclusive, meaning Windsurf can still work with other companies, and Google is not taking any stake or controlling interest in the startup.

Top Windsurf Talent Joins Google DeepMind

Windsurf’s CEO Varun Mohan, co-founder Douglas Chen, and several members of the startup’s research and development team are set to join Google’s DeepMind AI division. Their focus will be on agentic coding initiatives, contributing to the ongoing development of Google’s Gemini project.

Google confirmed the hiring, saying, “We’re excited to welcome some top AI coding talent from Windsurf’s team to Google DeepMind to advance our work in agentic coding.”

Behind the Rs 20,000 Crore Windsurf Deal

This move comes after months of negotiations between Windsurf and OpenAI, which had reportedly considered acquiring the startup at a valuation of $3 billion (about Rs 25,500 crore).

Instead of acquiring the company, Google struck a non-exclusive licensing deal worth $2.4 billion (about Rs 20,400 crore). Windsurf’s investors, who had backed the company with $243 million (Rs 2,065 crore), will now receive liquidity from this licensing fee while retaining their stakes. The startup was last valued at $1.25 billion (Rs 10,625 crore), according to PitchBook.

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Windsurf Leadership Changes, Team Remains

Following the deal, Jeff Wang, formerly head of business at Windsurf, has been appointed interim CEO. Graham Moreno, previously VP of global sales, will serve as president. The majority of Windsurf’s 250 employees will continue with the company, which now aims to focus on enterprise-focused innovation in AI.

The Rise of ‘Acquihire’ Deals in AI

Google’s deal is the latest example of a growing trend in the tech industry: acquihire deals, where companies license technology and hire key talent without acquiring the company outright.

This model helps avoid regulatory scrutiny from U.S. antitrust authorities. Microsoft, for instance, signed a $650 million (Rs 5,525 crore) deal with Inflexion AI. Amazon hired the co-founders of Adept, while Meta took a 49% stake in Scale AI.

Regulators are increasingly examining whether such deals are structured to avoid competition laws, especially as big tech companies aggressively compete to dominate the AI landscape.