India, July 14 -- In an even more epic twist in the AI coding tools market, the highly publicised 3 billion dollars bid by OpenAI to acquire popular AI coding tool Windsurf officially collapsed, according to reports. The failed deal, over several months in negotiations, has now left the door open to Google DeepMind division to come in and grab the key talent and technology licences available at Windsurf with a major change as the race to dominate the coding assistants segment of AI accelerates.

In July 2025, the deal collapsed because the exclusivity term associated with OpenAI had finished. This would have been the biggest acquisition made by OpenAI ever. Another major ground was the issue of Microsoft participation, since Microsoft, be...