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Home / Company / Anysphere

Anysphere

Last Updated January 6, 2026

Anysphere is an AI software company that builds Cursor, an AI-native fork of Visual Studio Code designed to act as a pair-programmer and agent across entire codebases. Rather than treating AI as a sidecar autocomplete, Cursor incorporates multi-file reasoning, repository-wide search, and agentic workflows that can plan and execute refactors or feature additions across many files at once. The product targets both individual developers and engineering teams, with a freemium model that feeds into Pro, Pro+, Ultra, Business, and Enterprise plans. From 2024 to late 2025, Anysphere’s growth trajectory has been exceptional. The company reached $100 million in ARR by January 2025—the fastest any SaaS company has achieved this milestone—without any marketing spend. By June 2025, ARR had climbed to approximately $500 million, and by November 2025, the company reported crossing $1 billion in annualized revenue. Multiple sources, including Bloomberg, have described Anysphere as “the fastest-growing startup ever.” Venture coverage confirms a $900 million raise led by Thrive Capital in June 2025 at a valuation close to $9.9 billion, followed by a $2.3 billion Series D round in November 2025 at an estimated $29.3 billion valuation. The Series D was co-led by Accel and Coatue, with participation from existing investors including Thrive Capital, Andreessen Horowitz, and DST Global, as well as strategic investors NVIDIA and Google. In December 2025, Anysphere announced the acquisition of Graphite, a code review platform valued at approximately $290 million following its $52 million Series B earlier in 2025. This acquisition positions Cursor to offer an end-to-end development workflow from code generation through code review and merge.
Company Overview: Anysphere
From an informational standpoint, Anysphere combines AI-native product architecture with rapid commercial scaling and category-defining growth. The company reached US$100 million ARR in January 2025—the fastest any SaaS company has achieved this milestone—grew to approximately US$500 million by mid-2025, and crossed US$1 billion in annualized revenue by November 2025, all without marketing spend. This trajectory places Anysphere among the fastest-growing software companies in history, albeit with figures that are primarily media estimates rather than audited disclosures. Strategically, Anysphere operates at the center of several converging trends: enterprise adoption of AI-assisted development, the shift from autocomplete to agentic multi-file workflows, and demand for integrated platforms covering the full development lifecycle. Its acquisition of Graphite (code review) and launch of Bugbot (debugging) signal expansion beyond editing into QA and governance. Deep adoption by Fortune 500 companies and endorsements from executives at NVIDIA and Google validate enterprise readiness. For observers evaluating the AI developer tools landscape, Cursor is often viewed as the leading AI-native IDE alternative to GitHub Copilot’s plugin approach. However, its US$29.3 billion valuation rests on continued execution, sustained demand, and the ability to manage compute costs and competitive pressure from Microsoft/GitHub. This section is intended to provide factual background on Anysphere’s market position and business model. It is not investment advice, does not constitute a recommendation, and should not be relied upon as a solicitation to buy or sell any security.
Investment Highlights

Scale & Growth

  • Grew from <US$100 M ARR in 2024 to >US$1 B annualized revenue by November 2025, according to company announcement and multiple media reports.
  • Reached US$100 M ARR in January 2025—fastest company ever to this milestone—without any marketing spend.
  • Serves >50,000 enterprise customers including over half of Fortune 500, with users at NVIDIA, OpenAI, Uber, Adobe, Shopify, Stripe, and Spotify.
  • Over 1 million daily active users as of November 2025, driven entirely by product-led, word-of-mouth growth.

 

Funding & Valuation

  • Raised US$900 M in June 2025 at US$9.9 B valuation (Thrive Capital-led), followed by US$2.3 B Series D in November 2025 at US$29.3 B post-money (Accel, Coatue co-led).
  • Strategic investors include NVIDIA and Google; institutional backers include Thrive Capital, Andreessen Horowitz, Accel, Coatue, and DST Global.
  • Total capital raised of ~US$3.4 B; four MIT-graduate founders each hold ~4.5% equity stakes valued at ~US$1.3 B.
  • Widely described as one of the fastest-growing AI startups globally and a leading player in AI-assisted development tools.

 

Product & Platform Expansion

  • Launched Cursor 2.0 (October 2025) with multi-agent architecture supporting up to 8 parallel AI agents and proprietary Composer model at ~4x speed of competitors.
  • Bugbot (July 2025) detects errors in AI-generated code via GitHub integration; priced at US$40/user/month add-on.
  • Acquired Graphite (December 2025), a code review platform with stacked pull request workflows, to create end-to-end development coverage.
  • Named TIME Best Inventions 2025 and Fast Company World’s 50 Most Innovative Companies (#26).
Product & Technology Leadership

Cursor Editor

  • Cursor 2.0: AI-native IDE built on VS Code, featuring multi-agent architecture with up to 8 parallel agents, aggregated change tracking, and background task automation.
  • Composer Model: Proprietary mixture-of-experts coding model delivering ~4x speed versus comparable frontier models, trained via reinforcement learning on software engineering tasks.
  • Agent Mode: Autonomous workflows that plan and execute multi-file edits, run terminal commands, handle errors, and iterate based on compilation/test feedback.
  • Repository-Wide Context: Indexes entire codebases for natural language queries and project-wide reasoning rather than single-file suggestions.

 

Developer & Enterprise Platform

  • Subscription Tiers: Hobby (free), Pro (US$20/mo), Pro+ (US$60/mo), Ultra (US$200/mo), Teams (US$40/user/mo), and custom Enterprise plans with SSO, audit logs, and admin controls.
  • Multi-Model Support: Routes between OpenAI, Anthropic, Google, and xAI models based on task requirements; proprietary models handle majority of code generation.
  • Privacy & Security: SOC 2 certified with privacy modes ensuring code is not stored remotely; enterprise features include data residency and compliance controls.

 

Quality & Review Tools

  • Bugbot (July 2025): GitHub-integrated debugging tool that scans pull requests for errors introduced by AI-generated code before production deployment.
  • Graphite (acquired Dec 2025): AI-powered code review platform with stacked pull requests, enabling parallel work on dependent changes without approval bottlenecks.
  • Debug Mode (Dec 2025): Integrates runtime logs with agent system to help reproduce and fix difficult bugs.
 Market Position & Strategic Advantage

Role in the AI Developer Tools Ecosystem

  • Widely regarded as the leading AI-native IDE, competing directly with GitHub Copilot’s plugin-based approach and emerging tools from Replit, Cognition (Windsurf), and Anthropic (Claude Code).
  • Holds estimated ~18% market share among paid AI coding tools; GitHub Copilot maintains ~42% with 1.8+ million paid subscribers.
  • Described by Bloomberg as “the fastest-growing startup ever” based on ARR trajectory from <US$100 M to >US$1 B in approximately one year.
  • Positioned as a full-stack alternative to thin integrations, with control over context management, model routing, and end-to-end developer experience.

 

Customer & Partner Reach

  • Serves >50,000 enterprise customers including over half of Fortune 500, with notable deployments at NVIDIA, Adobe, Uber, Shopify, PayPal, Stripe, OpenAI, and Midjourney.
  • Product-led growth with zero marketing spend; adoption driven by developer word-of-mouth and bottom-up enterprise discovery.
  • NVIDIA CEO Jensen Huang called Cursor his “favorite enterprise AI service”; Google CEO Sundar Pichai publicly used Cursor to build a webpage.
  • Reported single-digit monthly cash burn rate with ~US$1 B in cash reserves as of December 2025.

 

Competitive Landscape

  • Versus GitHub Copilot: Competes directly on AI capability but differentiates through full IDE ownership, repository-wide context, and agentic workflows versus plugin architecture.
  • Versus Claude Code: Anthropic’s terminal-based tool reached ~US$500 M run-rate by September 2025 but lacks full IDE integration.
  • Versus Windsurf: Acquired by Cognition in July 2025; key executives joined Google DeepMind in separate US$2.4 B talent deal.
  • Overall, positioned as the AI-native IDE leader rather than a plugin or terminal-based alternative.
Financial Opportunity

Revenue Model

  • Generates majority of revenue from subscription fees across Hobby (free), Pro (US$20/mo), Pro+ (US$60/mo), Ultra (US$200/mo), and Teams (US$40/user/mo) tiers.
  • Enterprise contracts with custom pricing, SSO, and compliance features contribute growing share of revenue with higher predictability.
  • Bugbot add-on (US$40/user/mo) and Graphite (code review) create incremental revenue streams on top of core editor subscriptions.
  • Usage-based credit pools (introduced June 2025) align pricing with compute costs; Pro includes US$20/month of API-priced credits plus unlimited Auto mode.

 

Growth Drivers

  • Rapid enterprise adoption of AI-assisted development, particularly for coding, refactoring, debugging, and multi-file workflows requiring strong context understanding.
  • Expansion from editing into adjacent workflows via Bugbot (QA) and Graphite (code review), increasing wallet share and platform stickiness.
  • Transition from individual subscriptions to team and enterprise deployments, with median enterprise contract value of ~US$61 K annually.
  • Structural tailwinds from developer shortage, increasing codebase complexity, and ~85% of developers now using AI tools in their workflows.

 

Key Risks

  • Model Dependency: Relies on external LLM providers (OpenAI, Anthropic, Google); reports suggest compute costs may consume ~100% of revenue, implying potential negative gross margins.
  • Competitive Intensity: Microsoft/GitHub Copilot holds ~42% market share with deep VS Code and GitHub integration; rapid feature parity efforts underway.
  • Valuation Expectations: ~US$29.3 B valuation on ~US$1 B ARR implies ~29x revenue multiple; execution risk if growth slows or margins remain compressed.
  • Founder Departure: CTO Arvid Lunnemark left in October 2025; remaining three co-founders continue to lead.
Company Snapshot
Founded: 2022
Founders: Michael Truell (CEO), Sualeh Asif, Arvid Lunnemark*, Aman Sanger
Headquarters: San Francisco, California, United States
Flagship Product: Cursor – AI-native code editor (fork of Visual Studio Code)
Primary Sector: AI-assisted developer tools & software engineering productivity
2024 ARR (Est.): <$100 M (sub-$100 M band reported)
January 2025 ARR: $100 M (fastest company ever to reach this milestone)
Mid-2025 ARR (Est.): ~US$500 M annual recurring revenue (Bloomberg, Financial Times reporting)
November 2025 ARR: >US$1 B annualized revenue (company announcement)
June 2025 Funding: ~US$900 M round led by Thrive Capital at ~US$9.9 B valuation
November 2025 Funding: ~US$2.3 B Series D valuing Anysphere at ~US$29.3 B post-money (Accel, Coatue co-led)
Total Primary Capital Raised: ≈US$3.4 B across all rounds
Latest Reported Valuation: ≈US$29.3 B post-money (Nov 2025, Series D)
Key Investors: Thrive Capital, Andreessen Horowitz (a16z), Accel, Coatue, DST Global, GV (Google Ventures), NVIDIA
Business Model: Product-led growth with freemium tiers and paid Pro ($20/mo) / Pro+ ($60/mo) / Ultra ($200/mo) / Teams ($40/user/mo) / Enterprise subscriptions
Notable Products: Cursor editor, Cursor 2.0, Composer (proprietary model), Agent Mode, Bugbot (AI debugging), Graphite (code review – acquired Dec 2025)
Daily Active Users: >1 million (as of November 2025)
Enterprise Customers: >50,000 enterprises, including over half of Fortune 500
Employee Count: ~300 (as of November 2025)*Arvid Lunnemark departed in October 2025 to found Integrous Research, a safety-focused AI research lab.

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About Anysphere

Anysphere, Inc. is a San Francisco–based AI developer-tools company behind Cursor, an AI-native code editor that sits at the center of an emerging “vibe coding” movement: developers describe what they want in natural language and the editor plans, edits, and refactors code across entire repositories. Founded in 2022 by four MIT students (Michael Truell, Sualeh Asif, Arvid Lunnemark, and Aman Sanger), the company has grown from an early-stage applied research project into one of the fastest-scaling AI software businesses globally.

Cursor is built as a fork of Visual Studio Code, meaning it preserves the familiar keyboard shortcuts, extension ecosystem, and mental model of the world’s most popular editor, but re-architects the environment around AI-native workflows. Instead of limiting AI to autocomplete, Cursor supports multi-file refactors, agentic workflows that carry out multi-step edits, and deep codebase search and reasoning, positioning it as a full AI pair-programmer rather than a thin plugin.

By late 2025, Anysphere had become a flagship example of AI-driven hyper-growth. A June 2025 round led by Thrive Capital raised approximately $900 million at a valuation near $9.9 billion. In November 2025, the company closed a Series D of approximately $2.3 billion that valued Anysphere at around $29.3 billion post-money. The company reported crossing $1 billion in annualized revenue and having over 1 million daily active users by that time. In December 2025, Anysphere announced the acquisition of Graphite, a code review startup, to expand its capabilities across the software development lifecycle.

Anysphere positions itself less as a generic AI lab and more as an “applied research” company dedicated to software creation: it uses top-tier frontier models under the hood, but the moat is in workflow, product integration, and the breadth of the engineering stack it aims to cover—editing, code search, refactoring, debugging (via Bugbot), code review (via Graphite), and eventually governance and quality gates around AI-produced code.

Note: Co-founder and CTO Arvid Lunnemark departed the company in October 2025 to found a safety-focused AI research lab called Integrous Research. The remaining three co-founders continue to lead the company.