Anysphere ['Cursor' AI code editor] News and Discussion [Pakistani co-founder]

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Anysphere, Inc. is an American software company which offers Cursor, an AI-assisted software development service. Founded in 2022, the San Francisco-based startup achieved a US$29.3 billion valuation and surpassed US$1 billion in annual recurring revenue by late 2025.[3] Cursor is commonly described as a vibe coding app.

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 US$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 Anysphere's valuation to about US$2.5 billion, four months after a US$60 million Series A that had valued the company at US$400 million.[9]

In March 2025 the company was reported to be negotiating a round that would value it near US$10 billion.[10] On 5 June 2025, Anysphere confirmed a US$900 million Series C led by Thrive Capital, lifting its post-money valuation to US$9.9 billion.[11]

Anysphere crossed US$100 million in annual recurring revenue (ARR) in January 2025, and topped US$500 million ARR by June 2025.
 

Cursor is an AI-assisted integrated development environment for Windows[citation needed], macOS, and Linux[citation needed]. It is a fork of Visual Studio Code with additional AI features. Cursor is proprietary software and developed by Anysphere, a San Francisco-based startup company founded in 2022.[2]

Service

Cursor uses large language models to manipulate text with autocomplete and chat query function. It is a fork of Visual Studio Code.[2] Several media outlets have described Cursor as a vibe coding app.[3][4][5][6]

Cursor allows developers to produce code from natural language instructions. Users can generate or update parts of their code by providing prompts.[2] It can also index the codebase, which can be queried in natural language.[7] The editor offers "smart rewrite" capabilities, allowing users to change multiple lines of code simultaneously.[8]


How I code with ONLY my voice
 
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SpaceX strikes $60 billion deal for the right to buy AI coding startup Cursor


SpaceX (SPAX.PVT) on Tuesday announced that it had struck a deal with AI coding tool maker Cursor, which gives SpaceX the option to purchase the startup later this year for $60 billion.

“SpaceXAI and @cursor_ai are now working closely together to create the world’s best coding and knowledge work AI,” the post said.

“The combination of Cursor’s leading product and distribution to expert software engineers with SpaceX’s million H100 equivalent Colossus training supercomputer will allow us to build the world’s most useful models,” the post said. “Cursor has also given SpaceX the right to acquire Cursor later this year for $60 billion or pay $10 billion for our work together.”

The deal is part of SpaceX CEO Elon Musk’s plan to transform the rocket company into an AI behemoth ahead of its upcoming IPO. Musk merged SpaceX with his xAI startup in February.

The SpaceX-Cursor tie-up also shows how AI startups continue to find larger partners in order to secure the compute needed to continue improving their models.

Earlier this week, for instance, Amazon (AMZN) announced a $5 billion investment in Anthropic that will give the AI startup broader access to its trainium chips.

The SpaceX IPO, targeted for June, is aiming for a $1.75 billion to $1.8 trillion valuation, potentially making it the largest in history.
 
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Cursor Team: Future of Programming with AI | Lex Fridman Podcast​

 
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Seems another over valued startup. What makes this any different from VisualStudio that has Co-pilot or Claude ?

Additionally these AI tools have not meaningfully enhanced productivity enough to reduce labor costs.
 
Seems another over valued startup. What makes this any different from VisualStudio that has Co-pilot or Claude ?

Additionally these AI tools have not meaningfully enhanced productivity enough to reduce labor costs.

Cursor is different than CoPilot because it also does vibe coding vs CoPilots's concentration on autocomplete.

Cursor allows you to pick several AI that writes the code (Claude, Google Gemini, etc).

The thing you are missing is that AI prompting opens up an entirely new user base (stop thinking its just for software people).
I had a guy who has never written a line of code in his life show me how Cursor works...and he is paying them $20/month for it.

There are kids using it.

You can say at the Cursor prompt "I want a React front end talking to a java Spring Boot back end server using an Oracle database..." and it will do everything including deploying the server and services. You just keep piling stuff on at successive prompts and it keeps writing. It's crazy what it can do.

Then you say "I want the React front end to now have [this..that..and the other]..it should make a server call to get [this..that..and the other]. The server needs to use an LLM to scrape the web for [this..that..and the other] and send it back to the React screen".

Boom! It does it.
 
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Seems another over valued startup. What makes this any different from VisualStudio that has Co-pilot or Claude ?

Additionally these AI tools have not meaningfully enhanced productivity enough to reduce labor costs.

SpaceX to acquire the AI coding startup Cursor for $60 billion​

 

SpaceX to acquire the AI coding startup Cursor for $60 billion​

One over-valued company acquires another. The actual financials of both companies are far more modest. People profiting from the AI bubble while it lasts.

$60 billion for a code editor ! Good Grief.
 

Cursor Launches Origin Code Hosting Platform as GitHub Rival​


TL;DR — Key Takeaways​

  • Cursor’s new Origin platform expands the company beyond AI coding into Git-based code hosting and pull request workflows.
  • Origin is designed to work alongside GitHub, letting enterprises test Cursor’s repository capabilities without immediately migrating existing infrastructure.
  • Tight integration between Cursor’s editor, AI agents and hosted source code could make agent-driven development workflows more efficient.
AI coding provider Cursor has launched Origin, a code hosting platform that puts source code and AI coding agents inside the Cursor development environment. The new coding platform expands the company into a market long dominated by GitHub.

The rollout arrived as GitHub suffered a major outage lasting more than six hours, disrupting pull requests, APIs, enterprise authentication and Copilot. Error rates approached 20% for several GitHub services and nearly 50% for archive and raw-file downloads during the incident.

The outage highlighted a problem that could help Cursor attract enterprise customers. A LeadDev analysis reported 257 GitHub incidents from May 2025 through April 2026, including 48 major incidents. GitHub CTO Vlad Fedorov has acknowledged that the service needs to be redesigned to support far greater scale.
 

OpenAI says it's ending its deal with Cursor because Elon Musk's companies violate contracts​



OpenAI said it's ending its contract with Cursor, a coding startup recently acquired by SpaceX, because it doesn't trust an Elon Musk-owned company to comply with its terms of service.

The company said in a statement published on Friday night that it plans to shut off Cursor's access to OpenAI models on November 12.

"This decision was incredibly tough, as we care deeply about our models being broadly available for developers," OpenAI said. "We are making this choice because we cannot be confident that SpaceX will use our technology within our terms of service, based on our experience with Elon Musk's companies violating contracts."

Spokespeople for SpaceX and OpenAI did not immediately return a request for comment.

OpenAI did not accuse Cursor of violating any terms. It instead pointed to past conduct by another Musk-owned company, Twitter, which Musk bought in 2022 and merged with SpaceX earlier in February.

OpenAI said in its blog post that Twitter had previously violated the terms of its contract, citing a New York Times story reporting that Musk cut off OpenAI's access to Twitter's data. OpenAI also wrote that the SpaceX CEO said under oath earlier this year that xAI had violated OpenAI's terms by training Grok from OpenAI's output.

Musk said at the time that it was "partly" true that xAI had distilled OpenAI's models, The Verge reported in April.

OpenAI said that it uses "custom contracts" with large partners like SpaceX to ensure compliance. The partnership OpenAI had with Cursor provided a "limited time window" to cancel the agreement after the acquisition, the company said.

SpaceX officially acquired Cursor this month for $60 billion. The deal gives the coding startup access to SpaceX's computing power.

Michael Truell, a cofounder and the former CEO of Cursor, responded to OpenAI's decision on X on Friday night.

"We're sorry to see that OpenAI put out a note saying they plan to block Cursor users from accessing OpenAI models in three months," Truell wrote. "OpenAI models serve about 5% of Cursor user traffic, and we're speaking with the OpenAI team to resolve this.

Cursor, an AI coding editor, offers models from several companies inside its software, including OpenAI, Anthropic, Google, and SpaceXAI. Its website lists OpenAI's GPT-5.6 Luna, Sol, and Terra models that paid users can access through its software.

It's unclear which Cursor users or models will be affected by the shutdown. OpenAI said that it will not provide "future models" to Cursor, including its coming Astra model.

The decision is the latest escalation in the long-running feud between Musk and OpenAI.

In 2024, Musk, an OpenAI cofounder and early backer, sued the company, its CEO, Sam Altman, and others over its shift from a nonprofit research lab to a partially for-profit entity.

In May, a federal jury found that Musk waited too long to bring the case forward, missing the statute of limitations.

Musk said he plans to appeal the decision.
 

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