Cursor-maker Anysphere is snapping up top talent from AI enterprise startups in an effort to compete with Microsoft's GitHub Copilot.

TechCrunch (TC) is a leading technology news and media site that covers the latest trends, startups, and innovations in the tech industry. With breaking news,  analysis, and expert commentary, TechCrunch provides  insights into the world of technology and entrepreneurship. Developers can learn about emerging technologies, funding opportunities, and market trends by following TechCrunch's coverage of the tech industry.

TechCrunch

Cursor's maker Anysphere acquired AI startup Koala to strengthen its enterprise capabilities and compete with Microsoft's GitHub Copilot. The deal brings Koala's engineering talent to build enterprise-readiness features, while Koala shuts down after raising $15M just months earlier. This reflects a broader trend where successful AI companies like Cursor are acquiring struggling startups for talent, similar to Big Tech's reverse-acquihires. Cursor has reached $500M ARR and works with over half the Fortune 500, but faces growing competition from Anthropic's Claude Code, Google's Windsurf acquisition, and other AI coding tools as the market consolidates around enterprise sales capabilities.

Cursor snaps up enterprise startup Koala in challenge to GitHub Copilot

Tech and VC heavyweights join the Disrupt 2025 agenda