Google strikes $2.4 bn deal with Windsurf
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Google has won a contract valued up to $200 million with the US Department of Defense's (DoD) Chief Digital and Intelligence Office (CDAO) to provide infrastructure for AI. OpenAI, Anthropic, and xAI have also been awarded contracts with a $200m ceiling.
The Pentagon's CDAO has awarded major AI contracts to Google, OpenAI, Anthropic, and xAI, escalating competition and deepening Silicon Valley's role in national security.
Google has hired Windsurf CEO Varun Mohan, co-founder Douglas Chen, and key team members, following a $2.4B tech licensing deal. The move boosts Google's AI coding push as Meta and OpenAI race for top AI talent.
OpenAI has increased the amount of compute capacity it plans to rent from Oracle as part of its Stargate data center plan, according to Bloomberg, a sign that the effort, which was announced in January,
Earlier this week, Oracle announced it had signed a single cloud computing contract worth $30bn in annual revenue beginning in 2028, without naming the customer. People close to the matter confirmed to the Financial Times that the customer was OpenAI as part of its expansion of Stargate.
Nvidia strengthened its partnership with OpenAI after the ChatGPT maker confirmed it has no plans to deploy Google's AI chips.