Acquihire Undermines Startup Trust

Google just pulled off a $2.4 billion acquihire of AI coding startup Windsurf—but the way it happened is shaking up the startup world. What began as a $3B OpenAI acquisition quietly fell apart after Microsoft intervened, paving the way for Google to license Windsurf’s IP and hire its top talent. The catch? Most employees are getting nothing, even some with vested equity. In this episode of the AI Daily Brief, we break down how this deal unraveled, what it signals for OpenAI and Microsoft, and why acquihires like this could destroy trust in the startup equity model.

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