- Cursor is opening a London headquarters and hiring 200 EMEA staff as its European revenue triples quarter-on-quarter in 2026
- SpaceX struck a deal in April giving it the right to acquire Cursor’s parent company Anysphere for $60 billion later this year
- Cursor serves more than 67% of Fortune 500 companies, writes 150 million lines of enterprise code daily, and hit $2 billion in annualised revenue in February 2026 — the fastest ARR ramp in B2B software history.
Four MIT graduates built a code editor in 2022. SpaceX now wants to buy it for $60 billion. While that deal plays out, Cursor is planting its flag in Europe, opening a London headquarters and hiring 200 staff as EMEA revenue triples quarter-on-quarter.
Cursor is built by Anysphere, a San Francisco-based startup founded in 2022 by Michael Truell, Sualeh Asif, Aman Sanger, and Arvid Lunnemark. It is an AI-native code editor — a fork of Visual Studio Code rebuilt from the ground up to embed AI directly into the development process, rather than bolt it on as a plugin. Developers use it to generate, revise, and review code across entire codebases, with the platform learning from each engineer’s habits over time.
The difference from legacy tools like GitHub Copilot is depth: Cursor is designed for complex, multi-file enterprise codebases, not single-line autocomplete. For example, an engineering team at BP can use Cursor to refactor a legacy codebase across hundreds of files in hours rather than weeks.
Cursor’s EMEA enterprise customers already include British Airways, BP, Deliveroo, Nokia, and Sanofi.
Traction
Cursor hit $100 million in annualised revenue in January 2025, $500 million by June, $1 billion by November, and $2 billion by February 2026 — a pace with no precedent in enterprise software.
Slack took five years to reach its first billion in ARR. Zoom took nine. The company projects a $6 billion run rate by year-end. It serves over 50,000 businesses, including 67% of Fortune 500 companies.
The SpaceX deal and funding
Pn April 21, 2026, SpaceX announced an agreement giving it the right to acquire Cursor for $60 billion later in the year, or pay $10 billion for ongoing collaboration, pairing Cursor’s IDE and Composer model with xAI’s Colossus supercomputing infrastructure, equivalent to one million H100 GPUs.
The deal preempted a $2 billion funding round that was reportedly co-led by Andreessen Horowitz, Thrive Capital, and Nvidia at a $50 billion valuation — a round described as already oversubscribed when SpaceX moved.
Anysphere has raised $3.38 billion in total across five rounds. Its most recent confirmed close was a $2.3 billion Series D in November 2025 at a $29.3 billion valuation. Andreessen Horowitz and Thrive Capital are returning investors; Nvidia participated in the Series D as a strategic co-investor.
Competition
Cursor operates in one of the most contested segments of AI. GitHub Copilot, backed by Microsoft and OpenAI, holds approximately 37% of the AI coding tools market with 4.7 million paid subscribers and 90% adoption among the Fortune 100.
Cognition, creator of autonomous AI software engineer Devin, raised more than $1 billion at a $26 billion valuation in May. Anthropic’s Claude Code has reached a $2.5 billion run rate with more than 300,000 business customers.
Where those products target standalone assistance or autonomous agents, Cursor focuses on enterprise-grade, multi-model workflows embedded directly into complex production codebases.
Market outlook
The global AI code tools market was valued at $7.88 billion in 2025 and is projected to reach $70.55 billion by 2034, growing at a CAGR of 27.57%, according to Fortune Business Insights. Enterprise buyers are rebuilding engineering workflows around AI-native tooling as a baseline.
The unanswered question is whether Cursor remains independent long enough to capitalise on that shift. If SpaceX exercises its $60 billion option, the most valuable developer tool in history becomes part of Elon Musk’s pre-IPO empire.
If it doesn’t, Cursor faces an increasingly well-funded field of rivals with the compute, distribution, and strategic depth to compete on every front.
