OpenAI Acqui-Hires Alex Codes Team to Boost AI Coding Tools

OpenAI has acquired the team behind Alex Codes, a Y-Combinator-backed startup that developed an AI-powered coding assistant designed to work within Apple’s Xcode development environment. The move marks another example of OpenAI’s growing trend of acquiring talent through “acqui-hires,” where the focus is on bringing in key personnel rather than purchasing the entire company. In a post on X, Alex Codes founder Daniel Edrisian announced that the entire team has joined OpenAI’s Codex division, which is responsible for developing the company’s AI coding agents. The startup, launched in 2024, aimed to bring AI-driven code assistance directly into Xcode—a platform that previously lacked native AI integration. “When we started out, Xcode had no AI. Building a ‘Cursor for Xcode’ sounded crazy, but we managed to do it anyway. And, over time, we built the best coding agent for iOS & macOS apps,” Edrisian wrote, reflecting on the team’s accomplishments. Apple’s recent update to Xcode, which now allows developers to access AI models like ChatGPT directly within the IDE, may have influenced the decision. While Edrisian did not confirm whether this shift played a role in the team’s move, it highlights the rapidly evolving landscape of developer tools and AI integration. Alex Codes’ blog post confirmed that the app will no longer be available for download after October 1. The company will continue to support existing users and maintain the product for as long as it remains in use, though no new features will be added. The startup’s Y-Combinator profile lists three team members, but it remains unclear whether all of them are joining OpenAI. The company has not disclosed further details on the terms of the acquisition. This acquisition follows a pattern seen in OpenAI’s recent strategy—hiring teams from promising startups without acquiring their full assets. Just earlier this week, OpenAI announced the $1.1 billion acquisition of product testing startup Statsig, another example of talent-focused deals. OpenAI has not yet issued a formal statement on the Alex Codes hire, and the company has not confirmed the exact role or scope of the team’s integration into Codex. However, the move underscores OpenAI’s continued push to strengthen its developer tools and expand its presence in the coding AI space.