Acqui-hires continue to be a prominent trend in the tech industry, and the latest example sees the team behind Alex Codes— a widely used tool that enables developers to leverage AI models within Apple’s Xcode development suite— joining forces with OpenAI.
In a post shared on X (formerly Twitter), Daniel Edrisian, the founder of Alex Codes, revealed that his startup’s team will be integrating into OpenAI’s Codex division. This division is tasked with developing OpenAI’s flagship AI coding agent, a key component of the company’s efforts in advancing AI-powered software development tools.
Alex Codes, which secured backing from Y-Combinator, was established in 2024 with a clear mission: to embed AI models directly into Xcode. However, a significant shift occurred earlier this year when Apple rolled out an update to Xcode, allowing users to access ChatGPT and other AI models without the need for third-party tools like Alex Codes. Edrisian did not address whether this Apple update played a role in his team’s decision to join OpenAI.
Reflecting on the startup’s journey in his X post, Edrisian wrote, “When we first launched Alex Codes, Xcode had no built-in AI capabilities. The idea of creating a ‘Cursor for Xcode’— a reference to the popular AI-powered code editor— seemed ambitious, if not outright crazy. But against the odds, we pulled it off. Over time, we refined our tool to become the top-tier coding assistant for anyone building iOS and MacOS applications.”
In a separate update published on Alex Codes’ official blog, the startup outlined its plans for existing users. While the team confirmed it will keep supporting current users, the Alex Codes app will no longer be available for download starting October 1. Additionally, the company made it clear that no new features will be added to the tool moving forward; instead, it will focus solely on maintaining the product for as long as existing users continue to rely on it.
According to Alex Codes’ listing on Y-Combinator’s platform, the startup had a small but dedicated team of three members working on the coding assistant. As of now, it remains unclear whether all three team members will be making the move to OpenAI.
TechCrunch has reached out to OpenAI for an official comment on this acquisition. We will update this article with any additional details or statements provided by the company.
This latest move aligns with OpenAI’s recent strategy of expanding its talent pool through acqui-hires. Notably, just earlier this week, the company announced a high-profile deal to acquire Statsig— a startup specializing in product testing solutions— for a reported $1.1 billion. This pattern highlights OpenAI’s focus on bringing in specialized teams to strengthen its capabilities across different areas of AI development.