Grammarly, a leading writing assistance platform, has announced its acquisition of Coda, a productivity startup, in a move aimed at transforming its AI assistant into a comprehensive AI productivity platform. As part of the deal, Coda's CEO and co-founder, Shishir Mehrotra, will take the reins as Grammarly's new CEO, succeeding Rahul Roy-Chowdhury.

The financial terms of the acquisition remain undisclosed, but the deal is expected to have significant implications for the writing and productivity landscape. With Coda's AI tools and products integrated into Grammarly's platform, users can expect access to new features, including generative AI chat and a productivity suite, designed to enhance workflow efficiency.

Mehrotra, a seasoned tech veteran with a 25-year track record, including stints as YouTube's chief product officer and chief technology officer, has outlined his vision for Grammarly's future. In a blog post, he envisions an AI assistant that not only provides exceptional writing suggestions but also seamlessly integrates with various systems, such as email, docs, CRM, and project trackers, to create a more holistic productivity experience.

Coda's core product, Coda Docs, will also undergo an upgrade, incorporating the Grammarly Assistant to provide users with a more comprehensive writing and collaboration solution. Mehrotra's long-term plan is to merge the best of Coda and Grammarly, creating a platform that combines company knowledge, generative AI chat features, and a full productivity suite, all powered by hundreds of agents designed to help users work smarter.

Founded in 2009, Grammarly boasts an impressive 40 million active users and a valuation of $13 billion. Coda, valued at $1.4 billion following its Series D raise in 2021, brings its expertise in AI-powered productivity tools to the table. The acquisition positions Grammarly to better compete with companies building AI tools for writing and productivity, as AI assistants become increasingly accessible and integral to modern workflows.

The move also marks a significant shift in Grammarly's strategy, as it seeks to expand its capabilities beyond writing assistance and into the realm of comprehensive productivity solutions. With Mehrotra at the helm, the company is poised to leverage Coda's technology and expertise to drive innovation and growth in the AI-powered productivity space.

As the AI landscape continues to evolve, Grammarly's acquisition of Coda serves as a testament to the growing importance of AI-driven solutions in the productivity and writing spheres. The deal is expected to have far-reaching implications for the industry, and users can expect to see significant enhancements to Grammarly's platform in the months and years to come.