Anysphere, Inc., doing business as Cursor, is a San Francisco-based technology company that develops generative artificial intelligence tools for producing computer code. Founded in 2022, its primary product is Cursor, an AI coding agent and software development environment that allows developers to write and edit code through natural-language instructions. The company achieved a US$29.3 billion valuation and surpassed $3 billion in annual recurring revenue by early 2026. It was acquired by SpaceX in June 2026 and became a wholly owned subsidiary of SpaceXAI in August 2026.
Cursor's tools leverage large language models to assist with programming tasks, including code completion, debugging, and multi-step project execution. The company has grown rapidly, attracting significant venture capital funding and strategic partnerships with major technology firms. Its acquisition by SpaceX marked one of the largest deals in the AI software sector, positioning Cursor as a key component of SpaceX's artificial intelligence initiatives.
History
Anysphere was incorporated in 2022 by Michael Truell, Sualeh Asif, Arvid Lunnemark, and Aman Sanger while they were students at MIT. In October 2023, the startup announced an $8 million seed round led by the OpenAI Startup Fund, with angel investors including former GitHub CEO Nat Friedman and Dropbox co-founder Arash Ferdowsi. The company is headquartered at 33 New Montgomery Street, San Francisco.
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 valued the company at $400 million. In March 2025, the company was reported to be negotiating a round that would value it near $10 billion. On June 5, 2025, Cursor confirmed a $900 million Series C led by Thrive Capital, lifting its post-money valuation to $9.9 billion.
Cursor crossed $100 million in annual recurring revenue (ARR) in January 2025 and topped $500 million ARR by June 2025. 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. Following this round, the company reported its annualized revenue had exceeded $1 billion.
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. On April 21, 2026, SpaceX announced a deal with Cursor giving it the right to acquire the company for $60 billion later that year, or to pay $10 billion for joint work. On June 16, SpaceX announced it was exercising the purchase right in an all-stock deal to buy Anysphere, expected to close in the third quarter of 2026.
The acquisition closed on August 14, 2026. Under the merger agreement, outstanding Anysphere shares were converted into 389,289,254 shares of SpaceX Class A common stock, with an implied equity value of $60 billion. Cursor survived as a wholly owned subsidiary of SpaceX and was integrated into the SpaceXAI team.
Products
Cursor
Cursor's main product is 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. In October 2025, Cursor released Cursor 2.0, which added support for running multiple agents in parallel using git worktrees or remote machines. Cursor has also released agents for web, mobile, command-line, and cloud environments.
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.
Bugbot
In July 2025, Cursor launched Bugbot, a code-review tool integrated with GitHub pull requests. Cursor also offers team and enterprise plans with administrative controls, usage analytics, single sign-on, model controls, and compliance features.
Models
Cursor offers access to AI models including Grok, Claude, and Google DeepMind. Cursor's Composer 2 model, released in March 2026, was built on top of Kimi 2.5, a January 2026 open weights LLM by Chinese startup Moonshot AI. This detail was not disclosed until revealed by users on X in the first week of its release. Cursor vice-president Lee Robinson acknowledged this, claiming "Only ~1/4 of the compute spent on the final model came from the base, the rest is from our training." Co-founder Aman Sanger acknowledged "a miss to not mention the Kimi base in our blog from the start." Moonshot congratulated Cursor, noting Cursor's "authorized commercial partnership" with Fireworks AI. TechCrunch speculated Cursor did not publicize its model's origin due to tensions with the AI industry in China.
Acquisitions
In November 2024, Cursor acquired Supermaven, an AI code-completion startup founded by Jacob Jackson, for an undisclosed sum. The Supermaven team was folded into Cursor, and Supermaven's standalone product was wound down in late 2025. 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. Around the same time, Cursor hired Travis McPeak, co-founder and CEO of cybersecurity startup Resourcely, to lead its security team. 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.
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. As of August 2025, the company employed roughly 300 people.
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. 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.