The AI Stack
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Anysphere

AI-powered code editor forked from VS Code.

Updated May 2026

Overview

Website
cursor.com
Founded
2022
Headquarters
San Francisco, CA
Posture
Code Copilots & IDEs

Product overview

Anysphere develops Cursor, an AI-assisted integrated development environment (IDE) for Windows, macOS, and Linux, which is a fork of Visual Studio Code with advanced AI features like autocomplete, natural language code generation, and smart rewrites. Used by 67% of Fortune 500 companies, it generates 150 million lines of enterprise code daily and supports large codebases efficiently. The company raised $2.3B in Series D funding in 2025 at a $29.3B valuation.

Revenue model

Enterprise subscriptions for AI coding tools

Moat

  • Proprietary Technology
  • Talent
  • Network Effects
  • First Mover
  • Cost Advantages
  • Scale Advantages

Anysphere's competitive moat includes its AI-native fork of Visual Studio Code (Cursor), exceptional talent density from top firms and MIT grads, proprietary technology like the superior 'Tab' model outperforming rivals by 20-30%, rapid innovation speed, network effects from swift user adoption, cost efficiency with high ARR per employee, and early-mover advantage in the AI coding market.

Headwinds

Heavy dependence on underlying LLM providers and potential competition from Microsoft/GitHub Copilot integration in VS Code.