Cursor Acquires AI Code Review Startup Graphite

Code editor provider Cursor has acquired Graphite, a startup specializing in tools that help developers identify vulnerabilities before deploying software updates into production environments.

The two companies announced the deal today. According to Fortune, Cursor plans to fund the acquisition through a combination of cash and equity. Graphite previously raised over $50 million from notable investors including Anthology Fund—backed by Anthropic PBC—as well as Figma Ventures and other prominent supporters.

Repositories containing application production code are known as main branches. When developers want to add new features, they create copies of the main branch, make changes, and then synchronize those modifications back to the original repository. Organizations typically require peer reviews by other team members before any engineer’s changes are finalized.

Graphite, operating as Screenplay Studios Inc., developed an AI-powered tool designed to accelerate code review workflows. It detects cybersecurity flaws and functional issues, including subtle inefficiencies—such as code that works correctly but consumes more hardware resources than necessary.

Beyond being bug-free and efficient, software updates often need to meet additional standards. New code must adhere to company-specific formatting guidelines and include documentation explaining its functionality. Graphite's platform can flag submissions that fail to comply with these requirements.

Adding features to applications usually involves creating multiple interdependent software modules. Traditionally, each module undergoes vulnerability checks sequentially, forcing engineers to wait for approval on one before starting the next—slowing down development velocity.

To streamline this process, Graphite offers a feature called stacked diffs. This enables developers to submit code fragments for review while immediately moving on to the next task, eliminating idle waiting periods. The system also reduces merge conflicts, which occur when multiple developers attempt to modify the same code segment simultaneously.

A centralized dashboard displays pending code changes awaiting review. Engineers can customize the interface—for example, prioritizing critical updates in prominent positions—and navigate efficiently using keyboard shortcuts.

Following the acquisition, Cursor intends to maintain Graphite as a standalone product alongside its flagship AI-powered code editor. That primary tool allows developers to generate software and fix bugs using natural language prompts. After securing $230 million in funding last month, Cursor revealed its editor generates over $1 billion in annualized revenue.

"Graphite’s product and brand will not be going away," wrote Merrill Lutsky, co-founder and CEO of Graphite, in a blog post. "We’ll continue to be where tens of thousands of engineers at top software companies review and merge their code. The only difference is we now have greater resources to keep building an incredible product."

These expanded resources will enable Graphite to introduce deeper integrations with Cursor’s ecosystem. Additionally, both companies plan to enhance Graphite’s AI-driven automation capabilities for code reviews.