Google-Windsurf $2.4B Deal, SpaceX-xAI $2B Investment & RealSense-Intel Split

At the beginning of May 2025, we reported that ChatGPT-maker OpenAI was believed to have acquired Windsurf—the world's most advanced AI coding assistant for developers and enterprises—for about $3 billion.

This would have been OpenAI’s largest acquisition—a title was later claimed by OpenAI’s purchase of io Products for $6.5 billion.

According to people familiar with the matter, the deal was set to be completed soon but hadn’t been closed yet, meaning that there was a possibility it would be called off—and that’s exactly what happened!

Following the collapse of OpenAI’s deal with Windsurf, Google swooped in with one of its own.

As per a news release published on Windsurf’s website, Google will absorb several key staff members of Windsurf, including CEO Varun Mohan, co-founder Douglas Chen, and others from the R&D team, all of whom will join Google's DeepMind AI division and will work in agentic coding.

The agreement includes a licensing deal priced at $2.4 billion, which brings Google the use of some of Windsurf’s tech under non-exclusive terms. It will not include any stake or controlling interest in Windsurf.

On the other end of the deal, the investment from Google will help Windsurf kick-start its next phase, which includes developing solutions for enterprise problems, while its investors are expected to receive liquidity through the license fee while retaining their stakes in the company.

It will also see Jeff Wang, Windsurf’s Head of Business, step into the role of interim CEO, and Graham Moreno, Windsurf’s VP of Global Sales, as President.

Once again, deals of this nature, popularly known as Acquihire Deals, bring up concerns about avoiding regulatory scrutiny, which could result in unfair trade practices and market monopolies, as companies avoid purchasing a company but yet absorb top talent.


Investments in the artificial intelligence (AI) sector are regular occurrences at this point, thanks to the technology’s brilliant capabilities, which include boosting productivity, streamlining operations, reducing expenses, and quickening turnaround times.

Recently, we reported that Elon Musk’s X was acquired by Elon Musk’s xAI.

Now, Elon Musk’s SpaceX has invested in Elon Musk’s X’s xAI.

To make this complicated (but funny) statement easier to understand—Space X invested in xAI.

Same same—but different—but still same

Yet, this drove the valuation of the combined company up to $113 billion.

The investment includes a commitment of $2 billion and comes as part of a $5 billion equity round that was marked by Morgan Stanley in January. The move comes as xAI looks to compete with rivals such as OpenAI, Google, Microsoft, and others in the AI space.

When asked if Tesla could invest in xAI, Elon Musk said, “It would be great, but subject to board and shareholder approval,” but didn’t confirm or deny its possibility. Even SpaceX, xAI, and Tesla didn’t provide a comment on the matter.

All of this comes in the same week that Tesla began rolling out Grok in Teslas, as an in-car conversational AI assistant. It will even come pre-installed in all new vehicles delivered on or after July 12, 2025, while older vehicles will gain access through an over-the-air update.

Currently, Grok is only supported on Teslas that have an AMD infotainment processor and running vehicle software version 2025.26 and higher, for models such as Model S, Model 3, Model X, Model Y, and Cybertruck.


Amid all these developments, chipmaker Intel comes with some major news.

According to a news release published on its website, RealSense, a pioneer in AI-powered computer vision, just announced a successful spinout from Intel Corporation. The company also raised $50 million in a Series A funding round.

The round was led by “a renowned semiconductor private equity firm,” and saw participation from strategic investors, including Intel Capital and MediaTek Innovation Fund.

RealSense will now operate as an independent company focused on advancing innovation in AI, robotics, biometrics, and computer vision, while its new capital will allow it to expand into adjacent and emerging markets, as well as meet increased demand for humanoid and autonomous mobile robotics (AMRs).

“We’re excited to build on our leadership position in 3D perception in robotics and see scalable growth potential in the rise of physical AI,” said Nadav Orbach, CEO of RealSense. “Our independence allows us to move faster and innovate more boldly to adapt to rapidly changing market dynamics as we lead the charge in AI innovation and the coming robotics renaissance.”

RealSense will continue to support its existing customer base and product roadmap, which includes its RealSense depth cameras that are used in 60% of the world’s AMRs and humanoid robots. RealSense has more than 3,000 customers worldwide and holds over 80 global patents.


The move comes as Intel’s current CEO, Lip-Bu Tan, claims that it may be too late for the company to compete with the likes of NVIDIA, and currently, Intel isn’t even in the top 10 chipmakers list anymore.

What do you think about the latest developments in the AI sector, as far as investments go?

Let us know in the comments below!