AI coding startup Cursor raises $2.3B at a $29.3B valuation, joining the industry’s elite as demand for developer automation surges.
Cursor, an artificial intelligence startup specializing in developer tools, announced Thursday that it has completed a $2.3 billion funding round, propelling its post-money valuation to $29.3 billion. This figure is nearly triple the valuation the company attained in its previous raise last June.
The company, which launched its A.I. coding tool in 2023, is now among a select group of A.I. firms, including OpenAI, Anthropic, and xAI, valued at $10 billion.
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Investor Backing and Market Position
The extensive funding round saw participation from prominent venture capital firms and strategic investors, including Accel, Thrive Capital, Andreessen Horowitz, DST Global, Coatue, Nvidia, and Google, according to a company blog post.
Cursor’s popular A.I. tool assists software developers in generating, editing, and reviewing code. The product originated within Anysphere, an applied research lab founded in 2022.
The company stated that its internal A.I. models generate more code than “almost” any other large language model currently available. Since its launch, Cursor claims to have surpassed $1 billion in annualized revenue and has expanded its employee count to over 300.
Jensen Huang, the CEO of Nvidia, a key participant in the round, highlighted the company’s significance in October, referring to it as his “favorite enterprise A.I. service” in an interview with CNBC.
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A Crowded and Lucrative Sector
Cursor operates in the rapidly expanding and competitive AI coding tool market. Its rivals include prominent players such as OpenAI, which offers its own coding tool, Codex, and Anthropic, which reported that its Claude Code tool had generated over $\$500$ million in run-rate revenue since its full launch in May.
The competition intensified recently with Cognition’s acquisition of the A.I. coding startup Windsurf in July. Earlier in the year, as CNBC previously reported, OpenAI had approached Anysphere about a potential acquisition of Cursor, but the discussions failed to gain momentum.
Despite the massive valuation, Michael Truell, Cursor’s CEO, indicated the company is focused on internal growth rather than an immediate public offering. “Our immediate focus is on building out the company and growing the team, and we have a lot more to do there before thinking about anything like going public,” Mr. Truell said in a Thursday interview on CNBC.
