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'This breaks the Silicon Valley social contract:' The whipsawing of Windsurf employees has left a bitter taste in tech


The whipsawing of Windsurf employees and the unusual cleaving of the company into separate parts have left a bitter taste in Silicon Valley.

Windsurf's path to a $3 billion acquisition by OpenAI looked like a startup fairytale — until the deal fell through, setting off a whirlwind of last-minute negotiations that left employees grappling with uncertainty, and a company split in two. "The problem is that the company technically didn't actually fully realize that decacorn potential, which was the reason we invested in them," said Krish Ramadurai, a partner at AIX Ventures, referring to a startup worth more than $10 billion." In the case of Scale AI, Meta paid$14 billion for a 49 percent stake in the data labeling company and hired its founder, Alexandr Wang, to run its Superintelligence group.

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