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Cursor Hires Koala Team to Take On GitHub Copilot
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Cursor Hires Koala Team to Take On GitHub Copilot
Cursor, the AI-powered IDE that has quickly become a darling among developers, just hired much of the team behind Koala, a four-year-old startup known for its AI-driven CRM system. Two sources told TechCrunch that Cursor’s parent company, Anysphere, struck a deal to pick up Koala’s top engineers and form an enterprise-readiness group aimed squarely at taking on Microsoft’s GitHub Copilot in corporate accounts.
For Koala, the move all but spells the end. The company announced it will wind down in September, only five months after closing a fifteen-million-dollar Series A that included CRV and HubSpot Ventures. Around thirty employees had helped land customers such as Vercel and Retool, yet shrinking runway and fierce competition proved too much.
Cursor is making the opposite journey. Anysphere says it crossed five-hundred-million dollars in annual recurring revenue in June and now serves more than half of the Fortune 500, including Nvidia, Uber, and Adobe. A growing field sales crew is walking executives through how Cursor can slot into existing workflows and, crucially, satisfy security teams, an area where Koala’s talent should help.
The hiring spree underscores how crowded the AI coding market has become. Cursor must out-sell GitHub while staying close to model partner Anthropic, whose Claude Code is surging. At the same time, Google just hired much of Windsurf’s leadership, and Cognition, creator of the Devin coding agent, grabbed the rest. Consolidation is accelerating as vendors race to lock up expertise and enterprise contracts.
Takeaway: Big budgets are shifting from experimental pilots to company-wide rollouts of AI development tools, and the winners will be those that prove they can scale securely. Cursor’s Koala pickup is less about a CRM product and more about stacking the bench for that high-stakes enterprise season.
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