Cursor announced Friday it will acquire Graphite, a code review platform used by engineers at Shopify, Snowflake, and Perplexity. The deal price was not disclosed, but Axios reported it was "way over" Graphite's last valuation of $290 million from its Series B in March.
The logic here is straightforward. AI-generated code ships fast but often ships buggy. Graphite built its reputation on "stacked pull requests," a workflow that lets developers work on multiple dependent changes without waiting for each approval. Cursor already has Bugbot for debugging, but Graphite adds a distinct capability for managing review pipelines at scale.
Graphite will keep operating independently, same team, same product. The companies say tighter integrations are coming in the next few months. CEO Michael Truell framed it this way: review and merge processes have become the bottleneck now that AI accelerates the writing part. His exact words, per Fortune: code review is "increasingly becoming a bottleneck to them moving even faster."
This is Cursor's third known acquisition in recent months. The $29 billion company bought Supermaven last year and scooped up talent from Koala in July. Graphite raised $81 million total before the deal, with backers including Accel, Anthropic's Anthology Fund, and Andreessen Horowitz.
The Bottom Line: Cursor is building the full stack of AI development tools, from writing code to shipping it, and Graphite fills a gap its Bugbot product didn't cover.
QUICK FACTS
- Deal price: undisclosed, but "way over" Graphite's $290M valuation (per Axios)
- Graphite's total funding before deal: ~$81 million
- Cursor's current valuation: $29.3 billion (November 2025)
- Cursor's annualized revenue: $1 billion (company-reported, November 2025)
- Graphite claims 500+ company customers including Shopify, Snowflake
