High costs and thin margins threatening AI coding startups
In February, AI coding startup Windsurf was in talks to raise a big new round at a $2.85 billion valuation led by Kleiner Perkins, at double the valuation it hit six months earlier, sources told TechCrunch at the time. That deal didn’t happen, according to a source familiar with the matter. Instead, news broke in April that the startup planned to sell itself to OpenAI for roughly the same valuation: $3 billion. While that deal famously fell apart, one bigger question remains: If the startup was