OpenAI's $3 billion acquisition of AI coding startup Windsurf collapsed at the last minute after amid disagreements between the company and Microsoft. The boys discuss what it means for the increasingly acrimonious relationship.

Then, Google immediately swooped in with the sort of weird deal we're increasingly seeing — taking Windsurf's founders and top 100 engineers, and leaving behind a gutted shell of a company.

Additionally, a double down on the thesis: the "wrapper application layer is doomed", and why companies like Windsurf (and Cursor, and Perplexity) are on borrowed time.