Cursor acquires code review startup Graphite, taking the next step toward an end-to-end platform for AI-assisted software development.
The acquisition was announced on December 19, 2025. The companies are closing the deal at a time when more and more organizations are finding that it is not writing code, but reviewing and merging it that is the biggest bottleneck.
While AI code editors have significantly accelerated the development process in recent years, code reviews have hardly changed for many teams. According to Cursor, this part of the process is taking up an increasing amount of engineers’ time, as the time needed to write code is decreasing.
Graphite focuses precisely on this problem. The company built a platform that helps teams review changes faster, more accurately, and more securely before code goes into production. The software is now used by tens of thousands of engineers at hundreds of companies, including big names in the technology sector.
With the acquisition, Cursor is bringing two complementary worlds together, according to Fortune. Cursor focuses on writing code using AI, while Graphite specializes in the review and merge process. By bringing these components closer together, the companies aim to bridge the gap between local development and collaboration around pull requests. In practice, this means smarter, context-aware code reviews that better align with how teams actually work.
Graphite will remain independent for the time being
The financial details of the acquisition have not been disclosed, although it involves a combination of cash and shares. Graphite will continue to operate as an independent product and brand for the time being, with the same team on board. Over the coming months and throughout 2026, the companies want to work on deeper integrations without forcing users to immediately switch to a completely new platform.
The deal comes shortly after Cursor announced that it had achieved annual revenue of $1 billion and a valuation of over $29 billion. The company was founded in 2022 by four MIT graduates and experienced rapid growth, thanks in part to large enterprise customers reporting substantial productivity gains. Graphite itself raised $52 million earlier this year and saw its revenue grow twentyfold in 2024, according to its own figures.
The acquisition is part of a broader trend in which the market for AI coding tools is growing rapidly. At the same time, there is debate about the actual productivity gains of such tools, with some studies pointing to limited or even negative effects.