Anysphere, Inc., doing business as Cursor, is an American software company which develops Cursor, an AI coding agent and software development environment. Founded in 2022, the San Francisco-based company builds tools and models that allow users to edit code, search codebases, run commands, and complete programming tasks using natural-language instructions. Cursor achieved a US$29.3 billion valuation and surpassed $3 billion in annual recurring revenue by early 2026.[3] On June 16, 2026, SpaceX announced that it will acquire Cursor, valuing the company at $60 billion, and place it under its SpaceXAI subsidiary.[5]

History

The company was incorporated in 2022 by Michael Truell, Sualeh Asif, Arvid Lunnemark and Aman Sanger while they were students at Massachusetts Institute of Technology (MIT).[1] In October 2023 the startup announced an $8 million seed round led by the OpenAI Startup Fund, with angels including former GitHub CEO Nat Friedman and Dropbox co-founder Arash Ferdowsi.[1]

In November 2024 TechCrunch reported that Benchmark, Index Ventures and others were bidding up Cursor's valuation to about $2.5 billion, four months after a $60 million Series A that had valued the company at $400 million.[6]

In March 2025 the company was reported to be negotiating a round that would value it near $10 billion.[7] On June 5, 2025, Cursor confirmed a $900 million Series C led by Thrive Capital, lifting its post-money valuation to $9.9 billion.[8]

Cursor crossed $100 million in annual recurring revenue (ARR) in January 2025, and topped $500 million ARR by June 2025.[9]

In April 2025, an AI help-desk program named "Sam" invented a non-existent login policy, triggering user cancellations before staff intervened and issued refunds.[10]

In October 2025, co-founder Arvid Lunnemark left the company[11] to found a safety-focused AI research lab, Integrous Research.

On November 13, 2025, Cursor closed a $2.3 billion Series D funding round co-led by Accel and Coatue Management, valuing the company at $29.3 billion. The round included participation from strategic partners Google and Nvidia.[citation needed] Following this round, the company reported its annualized revenue had exceeded $1 billion.[12]

In April 2025, Cursor was featured in the Forbes AI 50 list.[13]

In early 2026, Bloomberg and The Information reported that Cursor was in discussions to raise approximately $5 billion at a valuation of between $50 billion and $60 billion, which would roughly double the Series D valuation within four months.[14]

On April 21, 2026, SpaceX announced that it struck a deal with Cursor to have the right to acquire the company for $60 billion later this year, or to pay $10 billion for work they are doing together.[15] On June 16, SpaceX announced that it was exercising this purchase right in an all-stock deal to buy Cursor's parent company, Anysphere, which is expected to close in the third quarter of 2026.[16]

Products

Cursor's main product is Cursor, an AI coding agent and software development environment. Its agent features can search across a codebase, edit files, run terminal commands, and carry out multi-step programming tasks from natural-language instructions.[17]

In October 2025, Cursor released Cursor 2.0, which added support for running multiple agents in parallel using git worktrees or remote machines.[18]

Cursor has also released agents for web, mobile, command-line, and cloud environments.[19][20][21]

In July 2025, Cursor launched Bugbot, a code-review tool integrated with GitHub pull requests.[22] Cursor also offers team and enterprise plans with administrative controls, usage analytics, single sign-on, model controls, and compliance features.[23]

A July 2025 change to Cursor's $20 Pro plan, switching from 500 requests to a usage-metered cap, provoked complaints about unexpected charges; the firm rolled back limits and promised refunds.[24]

Models

Cursor integrates third-party large language models, including models from Anthropic and OpenAI, in addition to its own models for coding tasks.[25]

Acquisitions

In November 2024, Cursor acquired Supermaven, an AI code-completion startup founded by Jacob Jackson, for an undisclosed sum.[26] The Supermaven team was folded into Cursor, and Supermaven's standalone product was wound down in late 2025.[27]

In July 2025, Cursor acquired top engineering talent from Koala, an AI-powered customer relationship management startup, to staff a new enterprise-readiness team; Cursor did not adopt Koala's CRM product, and Koala subsequently shut down.[28] Around the same time, Cursor hired Travis McPeak, co-founder and CEO of cybersecurity startup Resourcely, to lead its security team.[28]

In December 2025, Cursor agreed to acquire Graphite, a New York-based code-review startup, in a cash-and-equity deal reported to be well above Graphite's most recent $290 million valuation.[29][30]

Business

Cursor prohibits the use of AI tools during the first round of coding interviews and invites finalists for a two-day on-site project with the core team.[31] As of August 2025, the company employs roughly 300 people.[4]

Controversies

In April 2025, an AI help-desk agent named "Sam" invented a non-existent login policy, prompting user cancellations before staff apologized and issued refunds.[32] A July 2025 change to Cursor's Pro plan pricing drew complaints about unexpected charges; the company apologized, rolled back limits, and said it would refund affected users.[33]

See also

References

  1. 1 2 3 4 Wiggers, Kyle (October 11, 2023). "Anysphere raises $8M from OpenAI to build an AI-powered IDE". TechCrunch. Retrieved August 9, 2025.
  2. ↑ Newton, Casey (August 4, 2025). "Why tech is racing to adopt AI coding". The Verge. The Verge. Retrieved October 13, 2025.
  3. 1 2 Metz, Rachel (May 21, 2026). "Cursor Hits $3 Billion Annual Sales Rate Ahead of SpaceX Deal". Bloomberg. Retrieved May 23, 2026.
  4. 1 2 Nolan, Beatrice (December 8, 2025). "Why tech is racing to adopt AI coding". Fortune. Retrieved May 5, 2026.
  5. ↑ "SpaceX to buy AI coding startup Cursor for $60 billion in enterprise push". Reuters. June 16, 2026. Retrieved June 16, 2026.
  6. ↑ Temkin, Marina (November 8, 2024). "Benchmark, Index, others are in a wild unsolicited bidding war over Anysphere, maker of Cursor". TechCrunch. Retrieved August 9, 2025.
  7. ↑ Temkin, Marina (March 7, 2025). "Cursor in talks to raise at a $10B valuation as AI coding sector booms". TechCrunch. Retrieved August 9, 2025.
  8. ↑ Temkin, Marina (June 5, 2025). "Cursor's Anysphere nabs $9.9B valuation, soars past $500M ARR". TechCrunch. Retrieved August 9, 2025.
  9. ↑ Shibu, Sherin (June 6, 2025). "The fastest-growing startup ever just surpassed $500 million in annual revenue. Here's why it keeps growing, according to its CEO". Entrepreneur. Retrieved August 9, 2025.
  10. ↑ Edwards, Benj (April 21, 2025). "Company apologizes after AI support agent invents policy that causes user uproar". Ars Technica. Retrieved August 9, 2025.
  11. ↑ "Cursor co-founder Arvid Lunnemark leaves AI coding startup". The Hindu. October 29, 2025.
  12. ↑ Ngo, Phong (November 18, 2025). "4 MIT graduates who built the popular AI coding tool Cursor become billionaires". VnExpress International. Retrieved December 10, 2025.
  13. ↑ SHRIVASTAVA", "RASHI. "Forbes 2025 AI 50 List - Top Artificial Intelligence Companies Ranked". Forbes. Retrieved January 8, 2026.
  14. ↑ "Cursor AI valuation hits $60B: Anysphere's $2B revenue surge". Tech Insider. April 2026. Retrieved April 20, 2026.
  15. ↑ Kolodny, Lora (April 21, 2026). "SpaceX says it can buy Cursor later this year for $60 billion or pay $10 billion for 'our work together'". CNBC. Retrieved April 22, 2026.
  16. ↑ Mac, Ryan; Schmidt, Gregory (June 16, 2026). "Riding High After I.P.O., SpaceX Will Buy A.I. Start-Up for $60 Billion". The New York Times. ISSN 0362-4331. Retrieved June 17, 2026.
  17. ↑ "Cursor Docs — Agent, Rules, MCP, Skills & CLI". Cursor. Retrieved May 24, 2026.
  18. ↑ Cursor Team (October 29, 2025). "Introducing Cursor 2.0 and Composer". Cursor. Retrieved May 24, 2026.
  19. ↑ Cursor Team (June 30, 2025). "Cursor on web and mobile". Cursor. Retrieved May 24, 2026.
  20. ↑ Cursor Team (August 7, 2025). "Cursor Agent CLI". Cursor. Retrieved May 24, 2026.
  21. ↑ Cursor Team (October 30, 2025). "Cloud Agents". Cursor. Retrieved May 24, 2026.
  22. ↑ Goode, Lauren (July 24, 2025). "Cursor's New Bugbot Is Designed to Save Vibe Coders From Themselves". Wired. Retrieved May 24, 2026.
  23. ↑ "Cursor for Enterprise". Cursor. Retrieved May 24, 2026.
  24. ↑ Zeff, Maxwell (July 7, 2025). "Cursor apologizes for unclear pricing changes that upset users". TechCrunch. Retrieved August 9, 2025.
  25. ↑ Newton, Casey (August 4, 2025). "Why tech is racing to adopt AI coding". The Verge. Retrieved May 24, 2026.
  26. ↑ Wiggers, Kyle (November 12, 2024). "Anysphere acquires Supermaven to beef up Cursor". TechCrunch. Retrieved April 20, 2026.
  27. ↑ Zeff, Maxwell (November 24, 2025). "Supermaven, acquired by Cursor, shuts down its standalone product". WebProNews. Retrieved April 20, 2026.
  28. 1 2 Zeff, Maxwell (July 18, 2025). "Cursor snaps up enterprise startup Koala in challenge to GitHub Copilot". TechCrunch. Retrieved April 20, 2026.
  29. ↑ Zeff, Maxwell (December 19, 2025). "Cursor continues acquisition spree with Graphite deal". TechCrunch. Retrieved April 20, 2026.
  30. ↑ Roof, Katie (December 19, 2025). "Exclusive: Cursor acquires code review startup Graphite as AI coding competition heats up". Fortune. Retrieved April 20, 2026.
  31. ↑ "Inside Cursor's hiring strategy: no AI in interviews and a two-day project with the team". Business Insider. June 12, 2025. Retrieved August 9, 2025.
  32. ↑ Edwards, Benj (April 21, 2025). "Company apologizes after AI support agent invents policy that causes user uproar". Ars Technica. Ars Technica. Retrieved October 13, 2025.
  33. ↑ Zeff, Maxwell (July 7, 2025). "Cursor apologizes for unclear pricing changes that upset users". TechCrunch. TechCrunch. Retrieved October 13, 2025.
source: https://en.wikipedia.org/wiki/Cursor_(code_editor)