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

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.

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.

On the flipside, I’m pretty sure the investors got screwed.

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...

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.