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Anysphere, Inc.
Cursor
TypePrivate
IndustryArtificial intelligence · developer tools
Founded2022[1]
FoundersMichael Truell · Sualeh Asif · Aman Sanger · Arvid Lunnemark[1]
Headquarters
San Francisco, California
,
United States
Key people
Michael Truell (CEO)
Sualeh Asif (CPO)
Aman Sanger (COO) [2]
Products
RevenueIncrease US$3 billion ARR (May 2026)[3]
OwnerSpaceX (pending)
Number of employees
~300 (2025)[4]

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, it was announced that SpaceX will acquire Cursor, valuing the company at $60 billion.[5]

History

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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 to found a safety-focused AI research lab, Integrous Research.[citation needed]

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.[11]

In April 2025, Cursor was featured in the Forbes AI 50 list.[12]

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.[13]

On April 21, 2026, xAI 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.[14] One 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.[15]

Products

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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.[16]

In October 2025, Cursor released Cursor 2.0, which added support for running multiple agents in parallel using git worktrees or remote machines.[17]

Cursor has also released agents for web, mobile, command-line, and cloud environments.[18][19][20]

In July 2025, Cursor launched Bugbot, a code-review tool integrated with GitHub pull requests.[21] Cursor also offers team and enterprise plans with administrative controls, usage analytics, single sign-on, model controls, and compliance features.[22]

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.[23]

Models

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Cursor integrates third-party large language models, including models from Anthropic and OpenAI, in addition to its own models for coding tasks.[24]

In January 2025, Cursor announced Fusion, a model used for Cursor Tab, its code-completion feature. Cursor said the model improved both edit suggestions and "cursor jumps", a feature that predicts where a developer may want to move next in a file.[25]

In October 2025, Cursor released Composer, its first agentic coding model. The company described Composer as a low-latency model designed for use inside Cursor and said it had been trained with tools including codebase-wide semantic search.[17][26]

Cursor announced Composer 1.5 in February 2026. According to the company, the model was produced by scaling reinforcement learning on the same pretrained model used for Composer.[27] In March 2026, Cursor released Composer 2 and published a technical report describing its training process, including continued pretraining on the open Kimi K2.5 base model and large-scale reinforcement learning in environments intended to emulate Cursor usage.[28][29]

In May 2026, Cursor released Composer 2.5. The company said the model improved on Composer 2 for long-running coding tasks and complex instruction-following, and described its training as using targeted reinforcement learning with textual feedback, synthetic data, Sharded Muon, and dual-mesh HSDP.[30]

In April 2026, Cursor announced a partnership with SpaceX to accelerate model training. Cursor said the collaboration was intended to support larger future models and described its sequence of model releases as moving from Composer to Composer 1.5, Composer 2, and later Composer 2.5.[31]

Acquisitions

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In November 2024, Cursor acquired Supermaven, an AI code-completion startup founded by Jacob Jackson, for an undisclosed sum.[32] The Supermaven team was folded into Cursor, and Supermaven's standalone product was wound down in late 2025.[33]

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.[34] Around the same time, Cursor hired Travis McPeak, co-founder and CEO of cybersecurity startup Resourcely, to lead its security team.[34]

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.[35][36]

Business

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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.[37] As of August 2025, the company employs roughly 300 people.[4]

Controversies

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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.[38] 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.[39]

See also

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References

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  1. ^ a b c d 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. ^ a b Metz, Rachel (May 21, 2026). "Cursor Hits $3 Billion Annual Sales Rate Ahead of SpaceX Deal". Bloomberg. Retrieved May 23, 2026.
  4. ^ a b 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. ^ Ngo, Phong (November 18, 2025). "4 MIT graduates who built the popular AI coding tool Cursor become billionaires". VnExpress International. Retrieved December 10, 2025.
  12. ^ SHRIVASTAVA", "RASHI. "Forbes 2025 AI 50 List - Top Artificial Intelligence Companies Ranked". Forbes. Retrieved January 8, 2026.
  13. ^ "Cursor AI valuation hits $60B: Anysphere's $2B revenue surge". Tech Insider. April 2026. Retrieved April 20, 2026.
  14. ^ 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.
  15. ^ 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.
  16. ^ "Cursor Docs — Agent, Rules, MCP, Skills & CLI". Cursor. Retrieved May 24, 2026.
  17. ^ a b Cursor Team (October 29, 2025). "Introducing Cursor 2.0 and Composer". Cursor. Retrieved May 24, 2026.
  18. ^ Cursor Team (June 30, 2025). "Cursor on web and mobile". Cursor. Retrieved May 24, 2026.
  19. ^ Cursor Team (August 7, 2025). "Cursor Agent CLI". Cursor. Retrieved May 24, 2026.
  20. ^ Cursor Team (October 30, 2025). "Cloud Agents". Cursor. Retrieved May 24, 2026.
  21. ^ Goode, Lauren (July 24, 2025). "Cursor's New Bugbot Is Designed to Save Vibe Coders From Themselves". Wired. Retrieved May 24, 2026.
  22. ^ "Cursor for Enterprise". Cursor. Retrieved May 24, 2026.
  23. ^ Zeff, Maxwell (July 7, 2025). "Cursor apologizes for unclear pricing changes that upset users". TechCrunch. Retrieved August 9, 2025.
  24. ^ Newton, Casey (August 4, 2025). "Why tech is racing to adopt AI coding". The Verge. Retrieved May 24, 2026.
  25. ^ Cursor Team (January 13, 2025). "A new Tab model". Cursor. Retrieved May 24, 2026.
  26. ^ Cursor Team (October 29, 2025). "Composer: Building a fast frontier model with RL". Cursor. Retrieved May 24, 2026.
  27. ^ Cursor Team (February 9, 2026). "Introducing Composer 1.5". Cursor. Retrieved May 24, 2026.
  28. ^ Cursor Team (March 19, 2026). "Introducing Composer 2". Cursor. Retrieved May 24, 2026.
  29. ^ Rush, Sasha (March 27, 2026). "A technical report on Composer 2". Cursor. Retrieved May 24, 2026.
  30. ^ Cursor Team (May 18, 2026). "Introducing Composer 2.5". Cursor. Retrieved May 24, 2026.
  31. ^ Cursor Team (April 21, 2026). "Cursor partners with SpaceX on model training". Cursor. Retrieved May 24, 2026.
  32. ^ Wiggers, Kyle (November 12, 2024). "Anysphere acquires Supermaven to beef up Cursor". TechCrunch. Retrieved April 20, 2026.
  33. ^ Zeff, Maxwell (November 24, 2025). "Supermaven, acquired by Cursor, shuts down its standalone product". WebProNews. Retrieved April 20, 2026.
  34. ^ a b Zeff, Maxwell (July 18, 2025). "Cursor snaps up enterprise startup Koala in challenge to GitHub Copilot". TechCrunch. Retrieved April 20, 2026.
  35. ^ Zeff, Maxwell (December 19, 2025). "Cursor continues acquisition spree with Graphite deal". TechCrunch. Retrieved April 20, 2026.
  36. ^ Roof, Katie (December 19, 2025). "Exclusive: Cursor acquires code review startup Graphite as AI coding competition heats up". Fortune. Retrieved April 20, 2026.
  37. ^ "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.
  38. ^ 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.
  39. ^ Zeff, Maxwell (July 7, 2025). "Cursor apologizes for unclear pricing changes that upset users". TechCrunch. TechCrunch. Retrieved October 13, 2025.
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