Windsurf Founders' Dramatic Exit: A Tale of Betrayal and Survival in the AI Startup World
Business Insider10 hours ago
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Windsurf Founders' Dramatic Exit: A Tale of Betrayal and Survival in the AI Startup World

Startups
startups
ai
leadership
venturecapital
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Summary:

  • Windsurf founders nearly sold the company to OpenAI for $3 billion before the deal fell through

  • Founders Varun Mohan and Douglas Chen left for Google DeepMind, leaving their team behind

  • Vinod Khosla criticized the founders, calling their actions a "bad example" of leadership

  • The remaining team struck a deal with Cognition, saving the startup from collapse

  • New CEO Jeff Wang described the situation as "crazy" and shared the emotional impact on the team

The Rollercoaster Ride of Windsurf

The AI startup Windsurf has been at the center of a whirlwind of events that have left the tech community buzzing. Founders Varun Mohan and Douglas Chen nearly sold their company to OpenAI for a staggering $3 billion, only for the deal to collapse at the last minute. Shortly after, the founders made a controversial move to Google DeepMind, leaving their team in disarray.

Vinod Khosla Venture capitalist Vinod Khosla criticized Windsurf's founders for leaving the team for Google DeepMind.

The Aftermath and Criticism

Vinod Khosla, a legendary venture capitalist and investor in Cognition (the AI startup that later acquired Windsurf), didn't hold back his disapproval. He labeled the founders' actions as a "bad example" of leadership, emphasizing the importance of trust and team loyalty in the startup ecosystem.

"Windsurf and others are really bad examples of founders leaving their teams behind and not even sharing the proceeds with their team," Khosla said.

The Team's Resilience

Despite the founders' departure, the remaining executives at Windsurf managed to secure a deal with Cognition, described by new CEO Jeff Wang as "crazy.

Wang shared the emotional toll on the team, noting how some were "in tears" upon hearing the news. Yet, he also acknowledged the difficult position the founders were in, showing a nuanced understanding of the situation.

The Bigger Picture

This incident raises important questions about founder ethics, team dynamics, and the pressures of startup life. It's a stark reminder of the challenges and moral dilemmas faced by those at the helm of fast-growing tech companies.

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