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Cursor is buying code review startup Graphite in a deal that brings together two popular tools in AI-powered software development.<\/p>\n
The companies declined to disclose financial terms of the transaction, but said it involves a mixture of cash and equity. They said Graphite will to continue operating as an independent product, but with deeper integration into Cursor\u2019s code editing platform. The deal is expected to close in the coming weeks.<\/p>\n
Cursor CEO, Michael Truell, told Fortune <\/em>the acquisition addresses what he sees as an emerging bottleneck in software development. <\/p>\n \u201cThe way engineering teams review code is increasingly becoming a bottleneck to them moving even faster as AI has been deployed more broadly within engineering teams,\u201d he said. \u201cOver the past 2.5 years, Cursor has made it much faster to write production code. However, for most engineering teams, reviewing code looks the same as it did 3 years ago. It\u2019s becoming a larger portion of people\u2019s time as the time to write code shrinks. Graphite has done lots of work to improve the speed and accuracy of code review.\u201d<\/p>\n AI code editors like Cursor help programmers while they\u2019re writing code\u2014making suggestions, explaining the function of a particular piece of code, and helping teams move around large projects faster. Graphite, used by companies like Shopify, Snowflake, and Figma, helps teams review changes and decide when code is ready to ship, after its written.<\/p>\n \u201cWe focused on the writing side of things. Graphite has focused on the review side of things. We think the two together can make something even better,\u201d Truell said.<\/p>\n Graphite CEO Merrill Lutsky said that the two companies \u201chave an almost identical vision for what the future of software development looks like.\u201d <\/p>\n \u201cCursor has defined the new way to write code, and we\u2019re defining how you review and merge it. Putting those together lets you build an end-to-end platform,\u201d he told Fortune<\/em>.<\/p>\n In the immediate term, both products will remain separate, with Graphite maintaining its independent brand. Throughout 2026, Truell said the companies plan to make it easier for developers\u2019 code to connect with the review process, including smarter, more context-aware code review that adapts to how teams actually write code.<\/p>\n Lutsky said concerns about AI-generated code quality have been a major focus for Graphite. \u201cWe\u2019ve invested deeply in ensuring that code written with the help of AI is safe and high quality,\u201d he said. \u201cTogether with Cursor, we\u2019re going to double down on that and help teams build secure, efficient, high-quality products.\u201d <\/p>\n The acquisition comes just one month after Cursor, which is valued at $29.3 billion valuation, announced it had reached $1 billion in annualized revenue. The company has seen a rapid rise since it was founded by a team of four MIT graduates in 2022. The company\u2019s AI coding tool, which first launched in 2023, has seen major deployments at companies like Salesforce, which according to Truell said had seen a 30% uplift in engineering productivity from using Cursor.<\/p>\n Graphite is not Cursor\u2019s first acquisition. The company bought AI coding assistant Supermaven in November 2024 and scooped up talent from enterprise startup Koala in July.<\/p>\n Graphite, which Lutsky co-founded nearly five years ago with Tomas Reimers and Greg Foster, raised $52 million in a Series B round in March 2025. The company told TechCrunch<\/em> revenue grew 20x in 2024 without disclosing absolute figures, and expanded to serving tens of thousands of engineers at more than 500 companies, including customers such as Shopify, Snowflake, Figma, and Perplexity. <\/p>\n Lutsky said the deal offers Graphite the opportunity to build a more unified development platform. \u201cWe\u2019ve long dreamed of connecting the surfaces where we create, collaborate on, and validate code changes,\u201d he said, adding that the deal dramatically accelerates that timeline.<\/p>\n The AI coding market has exploded over the past two years as enterprises rush to adopt AI tools in hopes of productivity gains. The U.S. market for AI code tools was valued at $1.51 billion in 2024 and is expected to reach nearly $9 billion by 2032.<\/p>\n Big Tech companies including Microsoft and Google are automating large parts of their coding. According to Microsoft CEO Satya Nadella,\u00a0as much as 30%\u00a0of the code\u00a0within the company\u2019s repositories is now written by artificial intelligence while at least 25% of new Google code is generated by AI, according to CEO Sundar Pichai.<\/p>\n Companies are betting that AI coding tools can supercharge software engineers productivity, but early studies have been mixed. A July study by nonprofit research organization METR found that experienced developers using AI tools were actually 19% slower when using an AI coding assistant, even though they believed they were faster. Consulting firm Bain & Company also reported in September that real-world savings from AI coding have been \u201cunremarkable.\u201d<\/p>\n Nevertheless, the deal positions Cursor more aggressively in an increasingly competitive market, with OpenAI, Anthropic, and GitHub Copilot among those vying for dominance in the space. Most of these tools, however, are built on top of the same underlying \u201cfoundation\u201d AI models rather than developing their own. Cursor, for example, uses Anthropic\u2019s Claude and allows users to choose models from other providers to power code generation.<\/p>\n While Graphite is also backed by Anthropic, Lutsky downplayed concerns about competing directly with large model providers. \u201cThe larger base-model companies are trying to compete across many different verticals,\u201d he said. \u201cCursor is solely focused on how engineers build with AI, and that focus really sets them apart.\u201d<\/p>\n Truell also brushed off the threat from major AI labs. \u201cOur approach here is to use a combination of the best technology that partners have to offer and then technology that we develop ourselves,\u201d he said. The company has focused on cherry-picking the best available models, supplementing them with proprietary ones, and wrapping everything in what it argues is a superior user interface.<\/p>\n As for the next year, Truell said the company currently has no additional deals planned, with Cursor focused on building out product features rather than eyeing an IPO. <\/p>\n \u201cOur goals for the company are very ambitious over the course of the next decade,\u201d he said. \u201cWe think that this is the decade in which coding will be automated, and the way in which professional teams build and deliver software will change across the entire software development life cycle.\u201d<\/p>\n<\/div>\n #Arrow #Button #Icon<\/p>\n","protected":false},"excerpt":{"rendered":" Cursor is buying code review s… <\/p>\n","protected":false},"author":1,"featured_media":5185,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[2],"tags":[704,3816,3817,1827,3818,703,1980,4605],"_links":{"self":[{"href":"https:\/\/microvibenews.com\/index.php?rest_route=\/wp\/v2\/posts\/5184"}],"collection":[{"href":"https:\/\/microvibenews.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/microvibenews.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/microvibenews.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/microvibenews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=5184"}],"version-history":[{"count":0,"href":"https:\/\/microvibenews.com\/index.php?rest_route=\/wp\/v2\/posts\/5184\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/microvibenews.com\/index.php?rest_route=\/wp\/v2\/media\/5185"}],"wp:attachment":[{"href":"https:\/\/microvibenews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=5184"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/microvibenews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=5184"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/microvibenews.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=5184"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}An end-to-end AI coding platform<\/h2>\n
The AI coding market is booming <\/h2>\n