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    OpenAI’s Windsurf deal is off, and Windsurf’s CEO is going to Google

    (www.theverge.com)
    745 points rcchen | 12 comments | 11 Jul 25 21:35 UTC | HN request time: 1.087s | source | bottom
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    metadat ◴[11 Jul 25 21:58 UTC] No.44537176[source]▶
    It's another Character.ai situation [0]. Unfortunate for any employees who aren't founders or researchers, as they don't get any payout or a nice new job from this exit structure. In fact they lose their whole time invested at the company.

    What a harsh time to work for an AI startup as a rank and file employee! I wonder how the founders justify going along with it inside their mind.

    [0] Character.ai CEO Noam Shazeer Returns to Google https://news.ycombinator.com/item?id=41141112 - 11 months ago (87 comments)

    Edit: Thank you @jonny_eh for the clarification. I can't imagine it feels awesome being a leftover but at least you vested out. "Take the money and leave" is still a bit raw when the founders and researchers are now getting the initial payout + generous Google RSU's.

    replies(8): >>44537275 #>>44537276 #>>44537278 #>>44537375 #>>44537758 #>>44538608 #>>44538906 #>>44539698 #
    1. jonny_eh ◴[11 Jul 25 22:11 UTC] No.44537276[source]▶
    The “leftover” employees at Character were NOT screwed over. Options were converted to cash at the deal’s valuation.

    Hopefully Windsurf employees are treated well here.

    Note: I worked at Character until recently.

    replies(2): >>44537326 #>>44537410 #
    2. _jab ◴[11 Jul 25 22:18 UTC] No.44537326[source]▶
    On the flipside, I’m pretty sure the investors got screwed.
    replies(4): >>44537396 #>>44537426 #>>44537895 #>>44538045 #
    3. jonas21 ◴[11 Jul 25 22:27 UTC] No.44537396[source]▶
    The investors made money too. The valuation at the last round was $1B, and Google paid them out at a valuation of $2.5B as part of the agreement [1].

    [1] https://www.theverge.com/2024/8/2/24212348/google-hires-char...

    replies(2): >>44539955 #>>44540610 #
    4. gowld ◴[11 Jul 25 22:28 UTC] No.44537410[source]▶
    Whose cash? OpenAI isn't paying, and Google isn't paying, and Windsurf investors already paid.
    replies(1): >>44538333 #
    5. helloericsf ◴[11 Jul 25 22:30 UTC] No.44537426[source]▶
    Honestly depends on when they got in. Seed investors? They're probably fine with their preferences. Series B and beyond? That's where it gets messy. What round you thinking?
    replies(1): >>44538059 #
    6. LilBytes ◴[11 Jul 25 23:34 UTC] No.44537895[source]▶
    Hopefully. The world is healing.
    7. ◴[12 Jul 25 00:00 UTC] No.44538045[source]▶
    8. dilyevsky ◴[12 Jul 25 00:03 UTC] No.44538059{3}[source]▶
    It's literally the opposite - seed investors get paid last with the exception of common.
    9. jonny_eh ◴[12 Jul 25 00:53 UTC] No.44538333[source]▶
    I wasn’t referring to Windsurf. But if there was no cash involved here, then ya, the employees were screwed. Do we know that’s the case though?
    10. blitzar ◴[12 Jul 25 07:00 UTC] No.44539955{3}[source]▶
    2.5x in 10 months. With returns like that - if I were the full time chef of the investors spare private jet I would be updating my CV and looking for a new gig.
    replies(1): >>44541621 #
    11. jansan ◴[12 Jul 25 09:26 UTC] No.44540610{3}[source]▶
    To quote an analyst from the Dotcom bubble era: "Everbody's happy, everybody's making money, something's wrong here"
    12. a5seo ◴[12 Jul 25 12:35 UTC] No.44541621{4}[source]▶
    That’s a deep burn.