The startup behind the viral AI coding app Cursor is snapping up top talent from AI enterprise startups in a bid to bolster its competition with Microsoft’s GitHub Copilot and win over businesses looking to supercharge their employees with AI coding tools. In one recent case, Cursor maker Anysphere struck a deal to acquire the AI-powered customer relationship management (CRM) startup Koala, two sources familiar with the matter told TechCrunch. As part of the deal, Cursor will bring on several of Koala’s top engineers to build out a dedicated enterprise-readiness team. However, the entire Koala team will not be joining Anysphere, and Cursor does not plan to integrate the startup’s core CRM product, a source told TechCrunch. Koala plans to shut down in September, the company said in a blog post published on Friday. The announcement comes just five months after Koala raised a $15 million Series A led by CRV, with participation from HubSpot Ventures, Recall Capital, and Afore. Koala was nearly four years old; had roughly 30 employees, according to LinkedIn; and had worked with clients such as Vercel, Statsig, and Retool.

Full report : Cursor snaps up enterprise startup Koala in challenge to GitHub Copilot.