Perplexity is quietly building an AI coding tool to rival Cursor and Claude Code

Perplexity, the San Francisco AI search startup valued at $20 billion, is quietly developing an internal AI coding tool codenamed "Teammate" that could rival Cursor and Claude Code. The tool, which has been used by Perplexity's own engineers since May, is designed to run software projects end-to-end and remains model-agnostic. A public launch has not been confirmed, but the move signals Perplexity's ambition to compete in the lucrative AI coding market.

Perplexity wants a piece of the AI coding boom. The San Francisco search startup has built an internal coding tool, codenamed “Teammate,” and may launch it publicly later, a person familiar with the matter told Business Insider https://www.businessinsider.com/perplexity-building-ai-coding-tool-take-on-cursor-and-openai-2026-7 . Its own engineers have used the tool since May. The company made its name with an AI search engine that takes on Google. A coding product would push it onto very different ground, closer to Cursor https://thenextweb.com/news/cursor-mobile-app-coding-agents-phone , Anthropic and OpenAI. All three already run widely used coding tools. What “Teammate” does Teammate aims to run software projects end to end, according to an internal announcement that Business Insider viewed. “It’s built for long-horizon engineering work: owning projects, investigating issues, and monitoring services,” the note reads. Screenshots show engineers handing it real jobs, such as hunting bugs in internal systems. The tool stays model-agnostic, the person said, so it does not sit on any single chatbot. That marks a notable choice, while rivals like Claude Code https://thenextweb.com/news/alibaba-bans-claude-code-anthropic-tracking-chinese-users lean on their makers’ own models. A Perplexity spokesperson declined to comment, and it remains unclear if or when the product ships. The startup reached a $20bn valuation https://thenextweb.com/news/perplexity-ipo-2028-openai-anthropic-listings in a funding round last year, so it has room to experiment. “Stop looking at code” The push comes from the top. A few weeks before Teammate went live internally, chief technology officer Denis Yarats told engineers that by year’s end, or sooner, they should “stop looking at code” and simply use AI. It echoes OpenAI’s own internal shift https://thenextweb.com/news/openai-codex-agents-shift-employees-non-developers to coding agents. Yarats also pushed back on the charge that AI writes “slop,” or low-quality code. “Slop is not going to be a thing,” he wrote, as long as the generated code passes quality checks. Why it matters The timing raises the stakes. AI coding ranks among the few places where the technology already earns real money, which is why the field has drawn so many well-funded entrants https://thenextweb.com/news/chamath-palihapitiya-8090-135m-series-a-ai-coding . A model-agnostic tool from a $20bn search company would add a fresh angle to a crowded fight. Two cautions temper it. This report rests on a single source, and Perplexity has not confirmed a launch. But the direction of travel looks clear: even an AI search company now sees writing your code, not just answering your questions, as territory worth taking. Get the TNW newsletter Get the most important tech news in your inbox each week.