Lenny's Podcast: Product | Growth | Career

Building a magical AI code editor used by over 1 million developers in four months: The untold story of Windsurf | Varun Mohan (co-founder & CEO)

Apr 20, 2025

Varun Mohan, co-founder and CEO of Windsurf, discusses the rapid rise of their AI-powered code editor, which gained over 1 million users in just four months. He reveals why they pivoted from a profitable GPU business to focus on coding assistance. The conversation delves into surprising UI improvements that boosted adoption, their bold B2B sales strategy, and how non-tech staff built custom tools to save costs. Varun predicts a future where 90% of code is AI-generated while emphasizing the growing demand for skilled engineers.

01:14:06

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Episode guests

Varun Mohan

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Episode notes

Podcast summary created with Snipd AI

Quick takeaways

Windsurf's success stems from its bold pivot from a profitable GPU infrastructure to a focused application development model addressing software developers' needs.

The incorporation of agency within the workforce is crucial, empowering team members to take ownership and drive innovation without seeking constant guidance.

Establishing a robust sales team early in the product lifecycle enables companies to adapt quickly based on direct market insights and customer feedback.

Deep dives

Product Evolution Through Cannibalization

The discussion emphasizes the necessity for companies to continuously innovate and disrupt their own products over a six to twelve month cycle. This approach encourages teams to develop features that make existing products seem outdated, fostering a culture of constant improvement. By challenging the status quo, companies can ensure they stay relevant in rapidly evolving markets, especially in tech. This mindset is crucial for maintaining a competitive edge, as relying solely on incremental upgrades can lead to stagnation.

Intro

4min

The Evolution of Codium: From GPU Virtualization to AI Coding Assistant

4min

Navigating AI Value Creation

5min

Revolutionizing Coding with Windsurf

7min

Navigating Education and Hiring in Tech

15min

Navigating the Transition: From Product Development to Sales Strategy

4min

Revolutionizing AI Code Editing

23min

Innovative Team Dynamics in Tech

13min

Varun Mohan is the co-founder and CEO of Windsurf (formerly Codeium), an AI-powered development environment (IDE) that has been used by over 1 million developers in just four months and has quickly emerged as a leader in transforming how developers build software. Prior to finding success with Windsurf, the company pivoted twice—first from GPU virtualization infrastructure to an IDE plugin, and then to their own standalone IDE.

In this conversation, you'll learn:

1. Why Windsurf walked away from a profitable GPU infrastructure business and bet the company on helping engineers code

2. The surprising UI discovery that tripled adoption rates overnight.

3. The secret behind Windsurf's B2B enterprise plan, and why they invested early in an 80-person sales team despite conventional startup wisdom.

4. How non-technical staff at Windsurf built their own custom tools instead of purchasing SaaS products, saving them over $500k in software costs

5. Why Varun believes 90% of code will be AI-generated, but engineering jobs will actually increase

6. How training on millions of incomplete code samples gives Windsurf an edge, and creates a moat long-term

7. Why agency is the most undervalued and important skill in the AI era

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• Brex—The banking solution for startups

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Where to find Varun Mohan:

• X: https://x.com/_mohansolo

• LinkedIn: https://www.linkedin.com/in/varunkmohan/

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Where to find Lenny:

• Newsletter: https://www.lennysnewsletter.com

• X: https://twitter.com/lennysan

• LinkedIn: https://www.linkedin.com/in/lennyrachitsky/

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In this episode, we cover:

(00:00) Varun’s background

(03:57) Building and scaling Windsurf

(12:58) Windsurf: The new purpose-built IDE to harness magic

(17:11) The future of engineering and AI

(21:30) Skills worth investing in

(23:07) Hiring philosophy and company culture

(35:22) Sales strategy and market position

(39:37) JetBrains vs. VS Code: extensibility and enterprise adoption

(41:20) Live demo: building an Airbnb for dogs with Windsurf

(42:46) Tips for using Windsurf effectively

(46:38) AI’s role in code modification and review

(48:56) Empowering non-developers to build custom software

(54:03) Training Windsurf

(01:00:43) Windsurf’s unique team structure and product strategy

(01:06:40) The importance of continuous innovation

(01:08:57) Final thoughts and advice for aspiring developers

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Referenced:

• Windsurf: https://windsurf.com/

• VS Code: https://code.visualstudio.com/

• JetBrains: https://www.jetbrains.com/

• Eclipse: https://eclipseide.org/

• Visual Studio: https://visualstudio.microsoft.com/

• Vim: https://www.vim.org/

• Emacs: https://www.gnu.org/software/emacs/

• Lessons from a two-time unicorn builder, 50-time startup advisor, and 20-time company board member | Uri Levine (co-founder of Waze): https://www.lennysnewsletter.com/p/lessons-from-uri-levine

• IntelliJ: https://www.jetbrains.com/idea/

• Julia: https://julialang.org/

• Parallel computing: https://en.wikipedia.org/wiki/Parallel_computing

• Douglas Chen on LinkedIn: https://www.linkedin.com/in/douglaspchen/

• Carlos Delatorre on LinkedIn: https://www.linkedin.com/in/cadelatorre/

• MongoDB: https://www.mongodb.com/

• Cursor: https://www.cursor.com/

• GitHub Copilot: https://github.com/features/copilot

• Llama: https://www.llama.com/

• Mistral: https://mistral.ai/

• Building Lovable: $10M ARR in 60 days with 15 people | Anton Osika (CEO and co-founder): https://www.lennysnewsletter.com/p/building-lovable-anton-osika

• Inside Bolt: From near-death to ~$40m ARR in 5 months—one of the fastest-growing products in history | Eric Simons (founder & CEO of StackBlitz): https://www.lennysnewsletter.com/p/inside-bolt-eric-simons

• Behind the product: Replit | Amjad Masad (co-founder and CEO): https://www.lennysnewsletter.com/p/behind-the-product-replit-amjad-masad

• React: https://react.dev/

• Sonnet: https://www.anthropic.com/claude/sonnet

• OpenAI: https://openai.com/

• FedRamp: https://www.fedramp.gov/

• Dario Amodei on LinkedIn: https://www.linkedin.com/in/dario-amodei-3934934/

• Amdahl’s law: https://en.wikipedia.org/wiki/Amdahl%27s_law

• How to win in the AI era: Ship a feature every week, embrace technical debt, ruthlessly cut scope, and create magic your competitors can't copy | Gaurav Misra (CEO and co-founder of Captions): https://www.lennysnewsletter.com/p/how-to-win-in-the-ai-era-gaurav-misra

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Recommended book:

• Fall in Love with the Problem, Not the Solution: A Handbook for Entrepreneurs: https://www.amazon.com/Fall-Love-Problem-Solution-Entrepreneurs/dp/1637741987

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Production and marketing by https://penname.co/. For inquiries about sponsoring the podcast, email podcast@lennyrachitsky.com.

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Lenny may be an investor in the companies discussed.

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Lenny's Podcast: Product | Growth | Career

Building a magical AI code editor used by over 1 million developers in four months: The untold story of Windsurf | Varun Mohan (co-founder & CEO)

Episode guests

Podcast summary created with Snipd AI

Quick takeaways

Deep dives

Product Evolution Through Cannibalization

The Importance of Timing in Hiring

Shift from Infrastructure to Application Development

Cultivating Agency in Teams

The Future of Software Development

Integrating Sales Early in Product Development

Remember Everything You Learn from Podcasts