Kevin Hou, Head of Product Engineering at Windsurf, details the company's journey from inception to achieving over one million users and a valuation of $1.25 billion, driven by a free-first strategy and vertical integration. Initially known as Codeium, Windsurf focused on bold product decisions and dogfooding, allowing the team to develop and refine their offerings internally before release. The company prioritized creating a self-hosted autocomplete & chat tool as a free alternative to GitHub Copilot, leveraging its expertise in machine learning infrastructure to handle complex technical challenges. Windsurf embraced a product philosophy centered on bold innovation rather than incremental improvements, demonstrated by the decision to eliminate the Chat feature from their editor in favor of agentic development tools that align with their long-term vision. The firm transitioned from handling sales internally to hiring dedicated sales personnel as enterprise interest surged, eventually launching their own integrated development environment (IDE) and reimagining their customer engagement strategy. Hou's cross-functional involvement across engineering, sales, and marketing has been instrumental in shaping Windsurf's growth and understanding market needs, helping the company to adapt and scale effectively.