Index continues its acquisition spree with the Graphite deal

AI coding assistant Cursor announced that it has acquired Graphite, a startup that uses artificial intelligence to review code and debug.

Although terms of the deal were not disclosed, Axios reported that Cursor paid “significantly more” than Graphite’s recent valuation of $290 million, which was set when the five-year-old company raised a $52 million Series B earlier this year.

The connection has strategic meaning. The output of AI-generated code is often buggy, forcing engineers to spend a lot of time On corrections. Although Cursor offers AI-powered code review through it Bugbot Product,The Graphite Specialized Toolkit provides a distinct capability called,Stacked Pull Request. Which enables developers to work on multiple dependent changes simultaneously without waiting for approvals.

The combination of AI-powered code writing and AI-powered code review tools speeds up the process from drafting code to shipping it.

Other startups offering AI-powered code review include CodeRabbit, valued at $550 million In September, a smaller competitor is Greptile, which announced a $25 million Series A This fall.

Cursor co-founder and CEO Michael Trowell first met Graphite’s founders, Merrill Lutsky, Greg Foster, and Thomas Reimers, before launching the company as Neo Scholar, a prestigious program for college students he runs. The new onesthe early enterprise company of Ali Partovi. Neo backed Graphite at the seed stage, according to PitchBook data.

Furthermore, both Cursor and Graphite have other co-investors, including Accel and Andreessen Horowitz.

The indicator, which was last evaluated 29 billion dollars In November, he was on an acquisition spree. Last month, it was purchased Growth by designa technology recruitment strategy company. In July, Index acquired talent from AI-powered CRM startup Koala For a post-money valuation of $129 million, according to PitchBook.