Cursor is an AI coding agent and code editor made by Anysphere, Inc., founded in 2022 by MIT students Michael Truell, Sualeh Asif, Aman Sanger and Arvid Lunnemark. It passed $4 billion in annualized revenue in early June 2026 and has been a wholly owned subsidiary of SpaceX since August 14, 2026, after a $60 billion all-stock acquisition. Michael Truell is CEO.
What does Cursor do?
Cursor is built on a fork of Microsoft's open-source VS Code, so developers keep their extensions and settings. On top of the editor it adds chat over the codebase, Cursor Tab multi-line predictions, and agents that edit many files, run terminal commands and work in parallel. Agents also run in the cloud and from a CLI, web and mobile. Bugbot and Graphite cover code review.
Who owns Cursor?
SpaceX. It signed an option in April 2026 to buy Anysphere for $60 billion or pay $10 billion for joint work, exercised the option on June 16, 2026, and closed on August 14, 2026. Anysphere shares converted into 389,289,254 SpaceX Class A shares. Cursor is being integrated into SpaceXAI.
How much revenue does Cursor make?
Cursor reports annualized run rates rather than audited revenue. It reached about $100 million in January 2025, $500 million by June 2025, more than $1 billion by November 2025, $2 billion in February 2026, $3 billion in late April 2026 and more than $4 billion in early June 2026. About 75% comes from business customers.
How does Cursor make money?
A free Hobby tier feeds paid plans: Pro at $20 a month and higher individual tiers, plus per-seat Teams and Enterprise plans with SSO, admin controls and privacy mode. Usage beyond plan allowances is billed at model rates. Inference paid to model providers is the largest cost, which is why Cursor trains its own Tab and Composer models.
Funding history
- 2023: $8 million seed led by the OpenAI Startup Fund
- 2024: $60 million Series A at $400 million
- June 2025: $900 million Series C at $9.9 billion, led by Thrive Capital
- November 2025: $2.3 billion Series D at $29.3 billion, co-led by Accel and Coatue, with Google and Nvidia
Who are Cursor's competitors?
GitHub Copilot (Microsoft), Claude Code (Anthropic), OpenAI Codex, Google's coding agents, Cognition's Devin and Windsurf, and Replit. Anthropic and OpenAI both supply models to Cursor and compete with it. After the SpaceX deal, OpenAI said it would end its model supply to Cursor, with a proposed shutoff of November 12, 2026.
Controversies
In April 2025 an AI support agent invented a login policy; in July 2025 a switch to usage-based Pro limits caused surprise charges that Cursor refunded; and in March 2026 users discovered that Composer 2 was built on Moonshot AI's Kimi K2.5, which Cursor then acknowledged.
