Cursor is an AI-native code editor and development environment developed by Anysphere, Inc., a San Francisco-based company founded in 2022. The tool leverages Generative AI to assist developers in writing, editing, and debugging code through natural-language instructions, positioning itself as a leading product in the emerging field of AI-assisted software development. By early 2026, Cursor had achieved a valuation of US$29.3 billion and surpassed $3 billion in annual recurring revenue, before being acquired and integrated into SpaceXAI in August 2026.
The company's primary product, also named Cursor, functions as an AI coding agent that can search across codebases, edit files, run terminal commands, and execute multi-step programming tasks. It supports integration with various Large language models, including models from OpenAI, Anthropic, and Google DeepMind, and has expanded to offer agents for web, mobile, command-line, and cloud environments.
History
Anysphere was incorporated in 2022 by Michael Truell, Sualeh Asif, Arvid Lunnemark, and Aman Sanger, all of whom were students at MIT at the time. The company is headquartered at 33 New Montgomery Street, San Francisco. 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.
Cursor's growth accelerated rapidly. In November 2024, TechCrunch reported that Benchmark, Index Ventures, and others were bidding up Cursor's valuation to about $2.5 billion, just four months after a $60 million Series A that had valued the company at $400 million. By March 2025, the company was negotiating a round near $10 billion, and on June 5, 2025, Cursor confirmed a $900 million Series C led by Thrive Capital, lifting its post-money valuation to $9.9 billion.
Revenue grew in tandem: Cursor crossed $100 million in annual recurring revenue (ARR) in January 2025 and topped $500 million ARR by June 2025. On November 13, 2025, the company closed a $2.3 billion Series D co-led by Accel and Coatue Management, valuing it at $29.3 billion, with participation from strategic partners Google and Nvidia. Following this round, annualized revenue exceeded $1 billion.
In early 2026, Bloomberg and The Information reported that Cursor was in discussions to raise approximately $5 billion at a valuation between $50 billion and $60 billion. On April 21, 2026, SpaceX announced a deal giving it the right to acquire Cursor for $60 billion later that year, or to pay $10 billion for joint work. On June 16, SpaceX exercised the purchase right in an all-stock deal to buy Anysphere, with the acquisition closing on August 14, 2026. Under the merger agreement, Anysphere shares were converted into 389,289,254 shares of SpaceX Class A common stock, implying an 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 version 2.0, which added support for running multiple agents in parallel using git worktrees or remote machines. The company 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 large language models including Grok, Claude, and Google DeepMind. Its 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 users on X revealed it in the first week of release. Cursor vice-president Lee Robinson then 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 that Cursor did not publicize its model's origin due to tensions with the AI industry in China, sometimes called an AI arms race.
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.