Cursor Rejects OpenAI Offer Amidst Rapid AI Coding Assistant Growth
Anysphere, the company behind the popular AI coding assistant Cursor, is experiencing rapid growth, making it an unattractive acquisition target, even for industry giant OpenAI. Sources familiar with the matter confirm that Anysphere previously declined acquisition discussions with OpenAI, despite significant interest from the ChatGPT maker.
Cursor's appeal stems from its widespread adoption among developers and its impressive revenue growth, reportedly doubling every two months. Current estimates place Anysphere's annual recurring revenue (ARR) at approximately $300 million.
The decision to remain independent reflects Anysphere's confidence in its trajectory and its desire to control its own destiny. Instead of being acquired, Anysphere is reportedly exploring raising capital at a valuation of around $10 billion.
OpenAI's Pursuit of AI Coding Tools
Despite missing out on Anysphere, OpenAI remains determined to expand its presence in the AI coding space. The company reportedly engaged with over 20 other potential acquisition targets before focusing on Windsurf.
OpenAI then turned its attention to Windsurf, another rapidly growing AI coding startup, reportedly making a $3 billion acquisition offer. While smaller than Anysphere, Windsurf boasts an impressive ARR of approximately $100 million, a significant increase from $40 million in February.
Windsurf's appeal lies in its increasing popularity within the developer community and its compatibility with legacy enterprise systems.
Strategic Implications for OpenAI
OpenAI's pursuit of AI coding startups underscores its strategic focus on identifying new growth opportunities. The company faces increasing competition from the likes of Google's Gemini and China's DeepSeek, which are exerting pricing pressure on foundational models.
Furthermore, competitors like Anthropic and Google have recently launched AI models that surpass OpenAI's models in coding benchmarks, potentially attracting developers seeking superior performance.
Acquiring a popular AI coding tool offers OpenAI a shortcut to establishing a strong presence in this market, rather than developing a solution from scratch.
Chris Farmer, partner and CEO at SignalFire, suggests that OpenAI will likely be acquisitive at the application layer, viewing it as crucial for their long-term success. The AI landscape is evolving rapidly, and strategic acquisitions may be essential for maintaining a competitive edge.
Source: TechCrunch