News
Key Takeaways
- Acquisition announced. Cursor acquires Graphite to enhance code review capabilities.
- Integration planned. Graphite will operate independently but integrate with Cursor's platform.
- Developer impact. Engineering teams may benefit from streamlined review and AI-driven workflows.
Cursor is betting that code review — not code generation — is the next bottleneck in AI-powered software development.
The company signed a definitive agreement on Dec. 19, 2025, to acquire Graphite, a code review platform used by hundreds of thousands of engineers at major software organizations. The deal, involving cash and equity, is expected to close within weeks.
According to Cursor, Graphite will continue operating independently with its existing team and product. The companies plan to develop integrations connecting local development environments with pull requests and combine their respective AI review tools over the coming months.
Table of Contents
- What’s Coming Next from Cursor + Graphite
- Inside Cursor’s Expansion Strategy
- Why Code Review Is the New Bottleneck
- What Is Cursor? A Look at the AI Coding Leader
What’s Coming Next from Cursor + Graphite
Cursor and Graphite outlined several planned enhancements following the acquisition:
| Capability | How It Works |
|---|---|
| Unified AI Reviewer | Combines Graphite's AI Reviewer and Cursor's Bugbot |
| Platform Integrations | Connects local development, background agents and pull requests |
| Stacked PRs Platform | Enhanced support for stacked pull requests and merge queue |
| Independent Operation | Graphite continues as standalone product with same team |
Related Article: Google Sues SerpApi Over Data Scraping
Inside Cursor’s Expansion Strategy
"Over the past 2.5 years, Cursor has made it much faster to write production code. However, for most engineering teams, reviewing code looks the same as it did three years ago. It's becoming a larger portion of people's time as the time to write code shrinks. Graphite has done lots of work to improve the speed and accuracy of code review."
- Michael Truell
CEO, Cursor
Cursor has established itself as the leading AI-assisted coding platform, closing 2025 with a $29.3 billion valuation and $1 billion in annualized revenue. The company is pursuing an aggressive acquisition strategy to control the entire software development workflow.
Cursor’s $2.3B War Chest and M&A Moves
In mid-November, Cursor raised $2.3 billion in a Series D round, bringing in Coatue, NVIDIA and Google alongside existing investors Accel, Thrive and Andreessen Horowitz. The company's M&A activity included a July acqui-hire of enterprise CRM startup Koala to strengthen enterprise capabilities.
Platform Upgrades: From Composer to Cloud Agents
Throughout fall 2025, Cursor launched multiple platform enhancements. Late October brought Composer, a proprietary mixture-of-experts model delivering frontier coding results at four times the speed of comparable models, and Cloud Agents for dispatching background agents from Slack, Linear or GitHub.
Enterprise features including Hooks, Sandbox Mode and audit logging followed, with adoption at Salesforce, NVIDIA and PwC. The December Cursor 2.2 release added a Browser visual editor and Debug Mode pairing agents with runtime logs for verified bug fixes.
Why Code Review Is the New Bottleneck
Engineering organizations face mounting pressure as AI coding tools accelerate code generation while creating new bottlenecks in review and collaboration workflows.
More than half of software professionals report productivity boosts up to 74% from AI-powered coding tools. GitHub Copilot (37%) and OpenAI Codex (34%) dominate the market. However, 23% of developers report their integrated development environments lack embedded tools.
Research from MIT's Computer Science and Artificial Intelligence Laboratory identified key challenges in AI-assisted code review, including:
- Tool invocation failures
- Collaboration friction
- Semantic understanding gaps
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What Is Cursor? A Look at the AI Coding Leader
Cursor offers a human-AI programming environment aimed at professional software engineering teams. The platform automates coding tasks through agentic AI workflows, a proprietary autocomplete model and automated debugging tools. The company reports adoption by millions of developers including users at Fortune 500 firms.
