{"id":462422,"date":"2025-12-21T15:21:29","date_gmt":"2025-12-21T15:21:29","guid":{"rendered":"https:\/\/www.europesays.com\/us\/462422\/"},"modified":"2025-12-21T15:21:29","modified_gmt":"2025-12-21T15:21:29","slug":"cursor-continues-acquisition-spree-with-graphite-deal","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/us\/462422\/","title":{"rendered":"Cursor continues acquisition spree with Graphite deal"},"content":{"rendered":"<p id=\"speakable-summary\" class=\"wp-block-paragraph\"> AI coding assistant Cursor announced that it has acquired Graphite, a startup that uses AI to review and debug code.<\/p>\n<p class=\"wp-block-paragraph\">Although the terms of the deal were not disclosed, Axios reported that Cursor paid \u201cway over\u201d Graphite\u2019s last valuation of $290 million, which was set when the five-year-old company raised a $52 million Series B earlier this year.<\/p>\n<p class=\"wp-block-paragraph\">The tie-up makes strategic sense. The output of code generated by AI is often buggy, forcing engineers to spend a lot of time <a href=\"https:\/\/techcrunch.com\/2025\/09\/14\/vibe-coding-has-turned-senior-devs-into-ai-babysitters-but-they-say-its-worth-it\/\" target=\"_blank\" rel=\"noopener\">on corrections<\/a>. Even though Cursor offers AI-powered code review through its <a href=\"https:\/\/cursor.com\/docs\/bugbot\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Bugbot<\/a> product, Graphite\u2019s specialized toolset provides a distinct capability called a \u201cstacked pull request,\u201d<strong> <\/strong>which enables developers to work on multiple dependent changes simultaneously without waiting for approvals.<\/p>\n<p class=\"wp-block-paragraph\">Combining AI-powered code writing with AI-powered code review tools speeds up the process from drafting code to shipping it.<\/p>\n<p class=\"wp-block-paragraph\">Other startups providing AI-powered code review include CodeRabbit, valued at $<a href=\"https:\/\/techcrunch.com\/2025\/09\/16\/coderabbit-raises-60m-valuing-the-2-year-old-ai-code-review-startup-at-550m\/\" target=\"_blank\" rel=\"noopener\">550 million<\/a> in September, and a smaller competitor, Greptile, which announced a <a href=\"https:\/\/www.greptile.com\/blog\/series-a\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">$25 million Series A<\/a> this fall.<\/p>\n<p class=\"wp-block-paragraph\">Michael Truell, co-founder and CEO of Cursor, first met Graphite\u2019s co-founders, Merrill Lutsky, Greg Foster, and Tomas Reimers, before launching the company as a Neo Scholar, a prestigious program for college students run by <a href=\"https:\/\/techcrunch.com\/2025\/04\/27\/from-coding-tests-to-billion-dollar-startups-ali-partovis-eight-year-experiment-is-paying-off\/\" target=\"_blank\" rel=\"noopener\">Neo<\/a>, Ali Partovi\u2019s early-stage venture firm. Neo backed Graphite at the seed stage, according to PitchBook data.<\/p>\n<p class=\"wp-block-paragraph\">Furthermore, both Cursor and Graphite have other investors in common, including Accel and Andreessen Horowitz.<\/p>\n<p>Techcrunch event<\/p>\n<p>\n\t\t\t\t\t\t\t\t\tSan Francisco<br \/>\n\t\t\t\t\t\t\t\t\t\t\t\t\t|<br \/>\n\t\t\t\t\t\t\t\t\t\t\t\t\tOctober 13-15, 2026\n\t\t\t\t\t\t\t<\/p>\n<p class=\"wp-block-paragraph\">Cursor, which was last valued at <a href=\"https:\/\/techcrunch.com\/2025\/11\/13\/coding-assistant-cursor-raises-2-3b-5-months-after-its-previous-round\/\" target=\"_blank\" rel=\"noopener\">$29 billion<\/a> in November, has been on an acquisition spree. Last month, it purchased <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2025-11-13\/ai-coding-leader-cursor-buys-firm-that-helps-startups-recruit-talent?embedded-checkout=true\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Growth by Design<\/a>, a tech recruiting strategy company. In July, Cursor scooped up the talent from <a href=\"https:\/\/techcrunch.com\/2025\/07\/18\/cursor-snaps-up-enterprise-startup-koala-in-challenge-to-github-copilot\/\" target=\"_blank\" rel=\"noopener\">AI-powered CRM startup Koala<\/a> for a post-money valuation of $129 million, according to PitchBook.<\/p>\n","protected":false},"excerpt":{"rendered":"AI coding assistant Cursor announced that it has acquired Graphite, a startup that uses AI to review and&hellip;\n","protected":false},"author":3,"featured_media":462423,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[21],"tags":[17318,42719,691,96135,210867,738,172995,339,8396,54263,158,67,132,68],"class_list":{"0":"post-462422","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-artificial-intelligence","8":"tag-a16z","9":"tag-accel","10":"tag-ai","11":"tag-ai-coding-assistant","12":"tag-anysphere","13":"tag-artificial-intelligence","14":"tag-cursor","15":"tag-in-brief","16":"tag-mergers-and-acquisitions","17":"tag-neo","18":"tag-technology","19":"tag-united-states","20":"tag-unitedstates","21":"tag-us"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@us\/115758241053383144","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/462422","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/comments?post=462422"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/462422\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media\/462423"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media?parent=462422"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/categories?post=462422"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/tags?post=462422"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}