Key Points
- Cursor acquires Graphite, an AI code‑review and debugging startup.
- Deal reportedly exceeds Graphite’s $290 million valuation.
- Graphite’s “stacked pull request” tech complements Cursor’s Bugbot product.
- Acquisition aims to speed up the move from AI‑generated code to production.
- Industry rivals include CodeRabbit and Greptile, both recently funded.
- Both companies share investors Accel and Andreessen Horowitz.
- Cursor valued at $29 billion and continues an acquisition spree.
- Recent purchases include Growth by Design and talent from Koala.
Strategic Acquisition
Cursor, an AI‑powered coding assistant, disclosed that it has purchased Graphite, a startup specializing in AI‑driven code review and debugging. The financial details of the transaction were not released, but Axios reported that Cursor paid “way over” Graphite’s previous valuation of $290 million, which had been set when Graphite secured a $52 million Series B round earlier in the year.
Complementary Technologies
Cursor’s existing Bugbot product provides AI‑assisted code review, but Graphite brings a distinct capability known as a “stacked pull request.” This feature enables developers to work on multiple interdependent changes simultaneously without waiting for individual approvals, addressing a common bottleneck in software development. By combining AI‑generated code with AI‑enhanced review tools, the combined offering aims to accelerate the workflow from drafting code to shipping it.
Industry Landscape
The acquisition underscores a growing market for AI‑based code‑review solutions. Competitors such as CodeRabbit, valued at $550 million in September, and Greptile, which announced a $25 million Series A this fall, illustrate the expanding investor interest in this niche.
Investor Connections
Michael Truell, co‑founder and CEO of Cursor, first met Graphite’s co‑founders—Merrill Lutsky, Greg Foster, and Tomas Reimers—through the Neo Scholar program, a prestigious initiative run by Neo, the early‑stage venture firm founded by Ali Partovi. Neo backed Graphite at the seed stage, and both Cursor and Graphite share other prominent investors, including Accel and Andreessen Horowitz.
Cursor’s Acquisition Momentum
Cursor’s valuation was last reported at $29 billion in November, and the company has been actively expanding its portfolio. In the month preceding the Graphite deal, Cursor acquired Growth by Design, a tech‑recruiting strategy firm. Earlier, in July, Cursor integrated talent from the AI‑powered CRM startup Koala, a transaction valued at a $129 million post‑money valuation.
Source: techcrunch.com