Prime Highlight
- Cursor has secured $2.3 billion in new funding, tripling its valuation since June and positioning itself among the fastest-rising AI development tool companies.
- The company aims to accelerate research and deliver the “next magical moments” in AI coding, reinforcing its ambition to lead the future of intuitive developer tools.
Key Facts
- Cursor is now valued at $29.3 billion, joining elite AI startups like OpenAI, Anthropic, and xAI, with its in-house models generating more code than most major LLMs.
- Despite surpassing $1 billion in annualized revenueand growing to over 300 employees, CEO Michael Truell said Cursor is not considering an IPO, focusing instead on scaling and product improvement.
Background
AI startup Cursor announced on Thursday that it has raised $2.3 billion in a new funding round, pushing its valuation to $29.3 billion. The latest round nearly triples the company’s value compared with its previous raise in June, marking Cursor as one of the fastest-growing players in the AI development tools sector.
Cursor is known for its AI coding tool, which helps software developers generate, edit, and review code. The product began as a project inside the applied research lab Anysphere, founded in 2022. Since its launch in 2023, Cursor said it has crossed $1 billion in annualized revenue and expanded its workforce to more than 300 employees.
Investors in the new round include Accel, Thrive Capital, Andreessen Horowitz, DST Global, Coatue, Nvidia, and Google. In a blog post, the company said the funding will help accelerate research and power the “next magical moments” in Cursor’s development journey.
Cursor is now among a small group of AI startups – including OpenAI, Anthropic, xAI, Safe Superintelligence, and Thinking Machines – valued at over $10 billion. The company’s in-house models reportedly generate more code than almost any other large language model today. Nvidia CEO Jensen Huang even described Cursor as his “favorite enterprise AI service” during a recent interview.
Despite the rapid rise, Cursor CEO Michael Truell said the startup is not considering an IPO. He told CNBC that the team remains focused on scaling the company and improving the product.
The competitive AI coding market has intensified as companies rush to build tools for developers. Cursor faces competition from OpenAI, Anthropic, and Cognition, which acquired Windsurf earlier this year. OpenAI had explored buying Cursor, but talks did not progress.
Cursor said its long-term goal is to push the limits of how powerful and intuitive coding tools can become.
