Coding startup Windsurf just survived a wild month, almost getting sold to OpenAI, its CEO and top talent decamping to Google, and then managing to sell itself.

Why it matters: With potentially $100 billion in annual sales at stake, there's a fierce battle among tech giants and startups to become the choice for AI-assisted programming.

The big picture: New chief executive Jeff Wang tells Axios that the company is back to its original mission — playing neutral Switzerland in a world of warring AI coding models.

Catch up quick: Windsurf was in the process of selling itself to OpenAI. The deal fell apart in July, largely due to concerns over what access Microsoft would have to the technology.

• Google then hired its CEO and top researchers, leaving the rest of the team in limbo. That was the lowest point, Wang said. "People were crying," he said.
• After a weekend of negotiations, though, Windsurf ended up selling the remaining company to Cognition, a deal that preserved jobs and compensation for workers. That, he said, led to his highest moment as relieved employees applauded for several minutes.
• "I hope somebody makes a movie of it ... it was very, very dramatic," Wang told Axios. "Everyone thought we were dead and it was over, right? We kind of flipped the script on that."

Between the lines: The drama for Windsurf employees didn't end with the Cognition acquisition.

• Cognition made clear its work-first ethos, informing employees that it expects them to be working six-day, 80-hour weeks, and offering buyouts to those who weren't on board.

What they're saying: Wang frames this as a positive, saying a return to startup mentality is key if the company is going to win against its well-heeled rivals, including Microsoft, Google, Anthropic, OpenAI and a host of startups.

• "This is ... the most competitive industry within the most competitive industry," Wang says.
• "And it's not like we're doing a negative thing either," he told Axios. "We're giving everybody nine months of pay and we're giving them health care for that nine months, too."
• "This is just the culture now," Wang said. "We want to make sure this is what you sign up for."
• Wang expects "the vast majority" will stay.

Zoom out: There's a lot of value, Wang said, in not developing one's own models.

• If Anthropic or Google or OpenAI falls behind in coding, a neutral third-party can switch to whichever model is most cost-effective, while those companies are largely reliant on their own products.
• In some cases, open source models, too, can be a good option.

Last week's launch of GPT-5 highlights the benefits of not taking sides, Wang said, noting that for months Anthropic had a clear lead in coding and was the go-to model despite being costlier.

• "I think they're both neck and neck now, which is a good thing," he said. "That does mean it is getting commoditized, and the prices should go down, and I think that makes our product a little more profitable."

What's next: For Wang, a key task has been mending fences with AI model providers, especially Anthropic, which had curtailed Windsurf's access to its technology when it appeared it was going to become part of OpenAI.

• "They looked at us differently because [they thought] we were with OpenAI," he said. "We want to make sure we are friends with all model providers."

Perplexity yesterday offered to buy the Chrome browser from Google for $34.5 billion, as first reported by the WSJ and confirmed by Axios.

Why it matters: If nothing else, this is a marketing masterstroke by Perplexity.

• The AI upstart raises its public profile, including awareness of its own nascent Comet browser, by offering to buy something that's not for sale.

Catch up quick: Google may be forced to sell Chrome as a remedy to its antitrust troubles, at which point there could be several bidders with even deeper pockets than Perplexity (including OpenAI).

Behind the scenes: The proposed term sheet it sent to Google is nonbinding, and refers to the transaction as an asset sale "tailored to satisfy remedy requirements" related to the antitrust case.

• Perplexity says it would "maintain uninterrupted availability and support for existing customers for at least 100 months post-close," and "always allow users to choose their own default settings."
• It also pledges to invest $3 billion over two years to support Chrome.

By the numbers: Perplexity most recently was valued by VCs at $18 billion, in an early-summer fundraising round led by Accel, but claims to have requisite financing lined up to buy Chrome for $34.5 billion.

• It did not identify any investors in its letter to Google, but told the WSJ that "several investors including large venture-capital funds had agreed to back the transaction in full."
• Multiple Perplexity investors tell Axios that they've not spoken to the company about a Chrome deal.

If you're a knowledge worker on the job hunt, you might want to upgrade your interview wardrobe to include pants.

Why it matters: Companies are bringing back in-person interviews after years of virtual hiring since the pandemic. That's because AI — which is upending the labor market — also makes it easier for candidates to cheat.

• During a technical interview on Zoom, where interviewees might previously have done a quick Google search, they now have access to sophisticated chatbots that can feed them answers off camera.
• In-person interviews also eliminate concerns over AI-enabled scammers impersonating workplaces or applicants.

Driving the news: Google, Cisco and McKinsey have brought back face-to-face interviews during some part of recruiting and hiring, the Wall Street Journal reported.

• Recruitment firm Coda Search and Staffing in Dallas estimated that in-person interview requests among its clients have increased from 5% last year to 30% this year, the WSJ reported.

What they're saying: "We are making sure we'll introduce at least one round of in-person interviews for people, just to make sure the fundamentals are there," Google CEO Sundar Pichai said in June on Lex Fridman's podcast.

The intrigue: AI plays a growing role in the job application process for both prospective employees and employers.

• Applicants are using AI to fine-tune resumes and write cover letters, while recruiters use AI tools to filter through candidates. In some cases, the interviewer is AI-generated.

• OpenAI added a new model-picker control in ChatGPT that lets users manually select "fast" or "thinking" modes, or leave the choice to the bot — the company's original plan for its new GPT-5 release. It also restored access to the older 4o model for all paid users. (X)
• Microsoft is apparently keen to poach key Meta AI talent with big offers. (Business Insider)
• Google is making it easier for search users to get their news from preferred sources. (The Verge)
• Elon Musk and Sam Altman traded barbs on X yesterday amid Musk's complaint that Apple is giving OpenAI preferential treatment in the App Store. (Axios)

Japan's ANA has retired its R2-D2-themed jet, leaving C-3PO as the only member of its "Star Wars" fleet still in service.