Anysphere, the parent company of the AI coding assistant Cursor, has announced its acquisition of the AI-powered code review startup Graphite, marking a significant expansion of its acquisition portfolio. While specific financial details of the transaction remain undisclosed, sources at Axios suggest that the purchase price exceeds Graphite’s last reported valuation of $290 million, which was set during its $52 million Series B funding earlier this year.
The merger aligns with Cursor’s mission to enhance code quality, as AI-generated code frequently contains bugs, necessitating extensive debugging by developers. Cursor’s existing product, Bugbot, offers AI-driven code review capabilities, but with Graphite’s specialized feature known as ‘stacked pull requests,’ developers can manage multiple interdependent code changes simultaneously, streamlining the development process.
This acquisition positions Anysphere to expedite the transition from code creation to deployment by integrating advanced code writing and review tools. Additionally, Anysphere’s competitive landscape includes other players in the AI code review arena, such as CodeRabbit, valued at $550 million, and Greptile, which recently secured $25 million in Series A funding.
Michael Truell, co-founder and CEO of Anysphere, initially connected with Graphite’s co-founders—Merrill Lutsky, Greg Foster, and Thomas Reimers—during his time as a Neo Scholar, a selective program for college students operated by Neo, the venture firm led by Ali Partovi. Furthermore, both companies share notable investors, including Accel and Andreessen Horowitz.
Anysphere has been actively pursuing expansion, with notable recent acquisitions including tech recruiting firm Growth by Design and talent from AI-powered CRM startup Koala, which had a post-money valuation of $129 million, according to PitchBook data. This strategic move further solidifies Anysphere’s commitment to enhancing its capabilities within the tech landscape.
