Incredible timeline to a $3B exit

> Windsurf began in 2021 as Exafunction, founded by MIT graduates Varun Mohan and Douglas Chen. The company initially focused on GPU optimization before pivoting to AI-assisted coding tools, launching Codeium, which later evolved into Windsurf.

> Series B (January 2024): $65 million at a $500 million valuation.

> Series C (September 2024): $150 million, led by General Catalyst, at a $1.3 billion valuation.

> May 2025: $3 billion acquisition from OpenAI

I wonder how much of the value is really from the model or the tooling around it. They all use the same models (mostly Claude, others have been horrible and buggy in my experience). Even co-pilot agent mode now uses Claude. The editor has their own LLM (?) that does the apply since LLMs often return snippets. They work well enough on Cursor. And then you have the auto-complete, which I think is their own model as well.

But the main value from me is from the agent mode and 95% of the value is the underlying model. The other stuff could be more or less a VS Code plugin. The other benefit is the fixed pricing. I have no idea how much 500 calls cost if I were to use the API, but I expect they're probably losing money.

> Even commuting within sf can be kind of a pain it took our folks 50 minutes from both areas in the mission and Menlo Park to get to an office in South Park.

This is not to impunge on your credibility, but it takes me 16 minutes to get from my door in 21st and Valencia to the door at 313 Brandan next to South Park.

This touches on some positive trends in San Francisco: of course, I e-bike, so I can get anywhere pretty fast, and the infrastructure improvements have made things faster and safer. I’m not really sure whom the bike is not a good fit for, so my expectation is commuters will catch up to this trend. More people will bike, resulting in vastly less toil, and better use of the city infrastructure overall.

Separately as a business owner, I’m not sure there is a generalizable strategy to office locations, even to tax avoidance. You want pretty smart people working for you, and smart people like spending 16 minutes on a journey instead of 50 minutes, and they can figure out how to do a lot of things more efficiently, and they’re going to all live together, and maybe that’s the value that locality in San Francisco provides: an aggregation of tradeoffs that people who apply themselves 100% to everything can enjoy.

The general trend of insulating the human customer away from human customer service is just a horrible thing that keeps spreading. It was bad enough outsourcing customer support to overseas agents who have their hands tied to only read from a script and generally do nothing, and now we're just talking to computers that can generally do nothing. The message is the same: we don't actually care about our customers.

I own a small business and I would rather shut my doors than force my paying customers through AI cattle gates to struggle for help. I can understand that providing customer support on a massive scale is hard, but it is arguably the MOST important part of the customer experience, maybe even more so than the product itself. It seems incomprehensibly short-sighted to abstract it away in the name of short-term profits.