AI coding assistant Cursor launched that it has acquired Graphite, a startup that makes use of AI to evaluation and debug code.
Although the phrases of the deal weren’t disclosed, Axios reported that Cursor paid “method over” Graphite’s ultimate valuation of $290 million, which was set when the five-year-old agency raised a $52 million Sequence B earlier this yr.
The tie-up makes strategic sense. The output of code generated by AI is often buggy, forcing engineers to spend a lot of time on corrections. Though Cursor supplies AI-powered code evaluation via its Bugbot product, Graphite’s specialised toolset provides a particular performance often called a “stacked pull request,” which permits builders to work on various dependent changes concurrently with out prepared for approvals.
Combining AI-powered code writing with AI-powered code evaluation devices quickens the strategy from drafting code to supply it.
Completely different startups providing AI-powered code evaluation embody CodeRabbit, valued at $550 million in September, and a smaller competitor, Greptile, which launched a $25 million Collection A this fall.
Michael Truell, co-founder and CEO of Cursor, first met Graphite’s co-founders, Merrill Lutsky, Greg Foster, and Tomas Reimers, sooner than launching the company as a Neo Scholar, a prestigious program for college school college students run by Neo, Ali Partovi’s early-stage enterprise company. Neo backed Graphite on the seed stage, in accordance with PitchBook data.
Furthermore, every Cursor and Graphite produce different consumers in frequent, along with Accel and Andreessen Horowitz.
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Cursor, which was ultimate valued at $29 billion in November, has been on an acquisition spree. Closing month, it purchased Development by Design, a tech recruiting method agency. In July, Cursor scooped up the experience from AI-powered CRM startup Koala for a post-money valuation of $129 million, in accordance with PitchBook.
