OpenAI recently expressed interest in acquiring Cursor, a leading AI-powered coding assistant developed by Anysphere. However, the startup, currently in rapid growth mode, has chosen to maintain its independence, even in light of lucrative acquisition offers. Cursor has emerged as one of the top players in the AI coding sector, experiencing an extraordinary surge in revenue that reportedly doubles every two months. Anysphere’s average annual recurring revenue now stands at approximately $300 million, showcasing its expanding market presence and popularity among developers. According to sources familiar with the situation, Cursor previously engaged in discussions with OpenAI regarding a potential acquisition but ultimately decided against proceeding with the deal. This reluctance to sell stems from the startup’s ambition to operate autonomously and capitalize on its ongoing growth trajectory. Furthermore, there have been reports of other acquisition offers that Anysphere did not entertain, underscoring their commitment to independence. Instead, Cursor is reportedly seeking to raise capital with aspirations of reaching a valuation close to $10 billion. OpenAI has not been deterred by the rejection, as it continues to explore potential acquisitions in the AI coding sphere. The tech giant has reportedly engaged in discussions with over 20 other AI coding startups but shifted its focus quickly towards Windsurf, another fast-growing player in the space, with a $3 billion acquisition offer. Windsurf, while smaller, is capturing significant market traction, with its annual recurring revenue increasing to approximately $100 million from just $40 million earlier this year. The demand for such tools is skyrocketing, particularly as they are designed to integrate smoothly with legacy enterprise systems, positioning Windsurf advantageously in the competitive landscape. As OpenAI seeks to consolidate its position amidst growing competition—especially from alternatives like Google’s Gemini and other emerging models—acquiring an established product proves beneficial. Instead of developing its own solution from the ground up, OpenAI can tap into existing tools that resonate with developers. Meanwhile, venture capitalists keep a keen eye on the evolving dynamics of developer tool startups, anticipating further consolidation in the industry. Key stakeholders speculate about OpenAI’s broader strategy in the current environment, with analysts suggesting it must remain aggressive at the application level to ensure continued relevance. While the future of these negotiations remains uncertain, the evolving landscape of AI coding tools signifies a crucial pivot point in the ongoing battle for supremacy in the tech sector.
