Codeium created Windsurf to build the most powerful AI system for developers, recognizing the limitations of the VS Code ecosystem in providing a seamless, agentic experience. They wanted to offer a tool that could reason about large code bases, execute code, and provide a more intuitive and magical user experience.
Codeium's extensions are popular because they are platform-agnostic and work across various source code management tools, including GitLab, Bitbucket, and others. This flexibility allows developers to use Codeium regardless of their preferred development environment, which is crucial for enterprise customers with diverse tech stacks.
Codeium kept their autocomplete free to build a strong user base and differentiate their product. They focused on the enterprise market to drive durable revenue and ensure their technology can solve complex, high-value problems for large organizations. Individual developers can switch products quickly, while enterprise customers provide a more stable and significant business opportunity.
Future plans for Cascade and Windsurf include improving knowledge retrieval, suggesting and executing terminal commands, and providing more detailed insights into developer actions. The team aims to make the AI more intuitive and powerful, with features like Clippy-style suggestions and better handling of multi-step tasks, enhancing the overall developer experience.
Codeium believes that developers loving their tools is crucial for enterprise adoption. Unlike many enterprise software products that developers dislike, Codeium ensures its tools are intuitive and valuable. This approach builds developer loyalty, which is essential for long-term success and minimizing churn.
Codeium avoids waitlists to remain accessible and focused on delivering a polished product. They prefer being seen as a reliable, boring company rather than one that launches with a lot of hype and uncertainty. This approach helps them build trust and ensure that their products are ready for immediate use.
Codeium hires both AI believers and skeptics to balance innovation and realism. Believers push the boundaries of what's possible, while skeptics, who often have high standards and a background in complex technology, ensure that the product meets rigorous quality and security requirements. This mix helps the company avoid unrealistic expectations and focus on practical, effective solutions.
Codeium built their own inference runtime to maintain control over core competencies and ensure high-quality, low-latency experiences. They believe that certain aspects of their technology, such as autocomplete, require proprietary solutions to achieve the best results. This approach allows them to optimize performance and user experience, which is essential for their product's success.
Hiring a sales team for AI products is challenging because it requires individuals with intellectual curiosity and a deep understanding of the technology. Codeium ensures their sales team can scale and maintain a high level of product knowledge, which is critical for explaining and demonstrating the value of their AI solutions to customers.
Codeium supports multiple IDEs to meet developers where they are, ensuring their AI tools are accessible regardless of the development environment. This strategy is particularly important for enterprise customers who use a variety of IDEs, such as JetBrains for Java and Eclipse for older projects. By supporting multiple IDEs, Codeium maximizes the value of their AI for a broader developer audience.
Our second podcast guest ever in March 2023 was Varun Mohan, CEO of Codeium; at the time, they had around 10,000 users and how they vowed to keep their autocomplete free forever: Today, over a million developers use their products, they still have their free tier, and they recently launched Windsurf), an AI IDE.
Chapters
00:00:00: Introductions & Catchup
00:03:52: Why they created Windsurf
00:05:52: Limitations of VS Code
00:10:12: Evaluation methods for Cascade and Windsurf
00:16:15: Listener questions about Windsurf launch
00:20:30: Remote execution and security concerns
00:25:18: Evolution of Codeium's strategy
00:28:29: Cascade and its capabilities
00:33:12: Multi-agent systems
00:37:02: Areas of improvement for Windsurf
00:39:12: Building an enterprise-first company
00:42:01: Copilot for X, AI UX, and Enterprise AI blog posts Get full access to Latent Space at www.latent.space/subscribe)