Cursor acquires Koala to boost enterprise AI tools and challenge Copilot

Cursor acquires Koala to boost enterprise AI tools and challenge Copilot

Cursor Acquires Koala to Boost Enterprise AI Capabilities In a bold move that signals intensifying competition in the AI coding tools space, Cursor acquires Koala —an AI-powered CRM startup—to expand its enterprise ambitions. This acquisition marks a strategic step by Anysphere, the company behind the fast-growing Cursor coding assistant, as it positions itself to compete directly with Microsoft’s GitHub Copilot. The decision to absorb top engineering talent from Koala, rather than its CRM product, reflects Cursor’s focus on building a robust team to deliver enterprise-ready solutions. With AI startups proliferating in 2025, many like Koala are faltering, and Cursor is seizing the opportunity to grow by acquiring expertise from those winding down. Image Credits:Cursor Why Cursor Acquired Koala and Not Its CRM Product Cursor’s acquisition is less about product integration and more about people. While Koala will shut down operations by September , its top engineers will move to Anysphere to f…