Cursor Raises $2.3 Bn, Hits $29.3 Bn Valuation as AI Code Editor Revenue Tops $1 Bn

Anysphere, the company behind one of the fastest-growing AI-powered code editors Cursor, has raised $2.3 billion in a late-stage funding round, pushing its valuation to $29.3 billion.

The round was led by Accel and Coatue, with participation from Google, Nvidia, Thrive, Andreessen Horowitz, and DST.

Anysphere also revealed that its annualised revenue has surpassed $1 billion, underscoring the rapid adoption of AI-assisted software development tools.

"This funding will allow us to invest deeply in our research and build Cursor’s next magical moments," it said in a blog post.

The startup built its code editor by modifying Microsoft’s open-source VS Code and integrating powerful large language models capable of generating, debugging, and optimising code.

Recently, it released its flagship model, Composer, which is a custom mixture-of-experts LLM that the company claims runs four times faster than comparable models and can complete many coding tasks in under 30 seconds.

Unlike most AI developers who rely on Nvidia’s CUDA libraries, Cursor built Composer using PTX, Nvidia’s low-level machine language. This approach delivered a threefold performance boost across several components.

Earlier this year, the startup announced a new $200-a-month Ultra plan for its AI coding assistant, Cursor, offering users 20 times more usage than its $20 Pro tier.

The Ultra plan includes priority access to new features and leverages multi-year partnerships with major AI model providers like OpenAI, Anthropic, Google DeepMind, and xAI.