Technology7/18/2025β€’TechCrunch

Cursor snaps up enterprise startup Koala in challenge to GitHub Copilot

Cursor snaps up enterprise startup Koala in challenge to GitHub Copilot

Anysphere, the company behind the AI-powered code editor Cursor, has acquired the enterprise startup Koala in a move to challenge Microsoft's GitHub Copilot. Cursor is positioning itself as an alternative to Copilot, offering AI-assisted coding features for developers. The acquisition of Koala, a startup that specializes in enterprise-level AI tools, is part of Anysphere's strategy to build a more robust and feature-rich product to compete with Copilot. The company aims to attract top talent from the AI enterprise startup ecosystem to strengthen its capabilities and provide a compelling alternative to Microsoft's offering. The news highlights the growing competition in the AI-assisted coding space, as companies strive to provide developers with powerful tools that can enhance their productivity and efficiency. The move by Anysphere underscores the importance of continuous innovation and the ability to adapt to the changing needs of the software development community.

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