Four young MIT dropouts turned a failed early idea into Anysphere, the company behind AI coding tool Cursor. After initially exploring an AI copilot for mechanical engineers, founders Michael Truell, Aman Sanger, Sualeh Asif and Arvid Lunnemark pivoted to AI-powered software development. Cursor rapidly grew into a multibillion-dollar company before SpaceX acquired Anysphere for $60 billion in 2026. The founders’ journey highlights how abandoning an unsuccessful idea and adapting to emerging technology can transform a startup’s fortunes.