NEW YORK: Artificial intelligence startup Cursor said on Thursday it has raised $2.3 billion in a funding round that values the company at $29.3 billion, a near-tripling of its valuation since June, as investor appetite for AI coding tools remains strong.
The funding round included major technology investors such as Accel, Thrive Capital, Andreessen Horowitz, DST Global, Coatue, Nvidia, and Alphabet’s Google, according to a company blog post.
Cursor, whose tool helps software developers write, edit, and review code, is now among a small group of AI “unicorns” valued at over $10 billion, a list that includes OpenAI, Anthropic, and xAI.
The company, built by applied research lab Anysphere, said the new capital will allow it to “invest deeply in our research and build Cursor’s next magical moments.”
Since its launch in 2023, Cursor has seen rapid growth, crossing $1 billion in annualized revenue and expanding its workforce to more than 300 employees, the company said. It also claimed that its in-house AI models now generate more code than “almost” any other large language models globally.
The market for AI-powered coding assistants has become increasingly competitive, proving to be one of the most lucrative early use cases for the technology. Cursor competes directly with tools from rivals like OpenAI, Anthropic, and Cognition, which acquired the coding startup Windsurf in July.
The sector’s consolidation and high valuations have attracted significant dealmaking. Earlier this year, OpenAI approached Anysphere about a potential acquisition of Cursor, but the talks did not progress, as CNBC previously reported.
The financial performance of competitors underscores the market’s potential. Anthropic said in September that its Claude Code tool has generated more than $500 million in run-rate revenue since its May launch. Cognition also reported in July that Windsurf was generating $82 million in annual recurring revenue.
Despite its rapid ascent, Cursor acknowledged the road ahead. “Internally, we often talk about how high the ceiling is for how great Cursor can become, and how much work still remains to get there,” the company said.
