AI Coding Startup Cursor Raises $2.3 Billion, Valuation Soars to $29.3 Billion

Coding assistant Cursor raises $2.3bn five months after its previous round | TechCrunch

Developer AI coding tool Cursor continues to gobble up venture capital as its valuation keeps climbing. On Thursday, Cursor announced a $2.3 billion funding round that valued the company at $29.3 billion, as originally reported by the Wall Street Journal. This round more than doubles the company's previous valuation of $9.9 billion, which it achieved in its $900 million Series C round in June. This most recent fundraise was led by co-led by Accel, an existing investor, and Coatue, which is new to the cap table. Strategic investors including Nvidia (an enterprise customer) and Google (an AI model supplier) also joined the round. Joshua Kushner's Thrive Capital led the company's prior two rounds and participated in this round as well. Cursor's co-founder and CEO Michael Truell told the Wall Street Journal that the capital from the round will be put toward developing Composer, an AI model released by Cursor in October. Cursor still relies on outside AI models from companies including Google, OpenAI and Anthropic to power its platform, but the plan is for Composer to carry some of that load in the future. Next year could be a very interesting one for Cursor. While the company is still seeing strong growth, OpenAI and Anthropic are both sharpening their AI coding products as the market for AI development tools continues to get more competitive.

AI startup Cursor raises $2.3 billion funding round at $29.3 billion valuation

Cursor built a popular AI coding tool that helps software developers generate, edit and review code. Its parent company, Anysphere, is an applied research lab that was founded in 2022. Cursor is one of just a handful of AI startups, including OpenAI, Anthropic, xAI, Safe Superintelligence and Thinking Machines, that are valued at over $10 billion. Investors including Accel, Thrive Capital, Andreessen Horowitz, DST Global, Coatue, Nvidia and Google participated in its latest funding round, according to a blog post. "This funding will allow us to invest deeply in our research and build Cursor's next magical moments," Cursor said.

AI Coding Startup Cursor Raises $2.3 Bn, Reaches $29.3 Bn Valuation | AIM

The round includes participation from existing investors Accel, Thrive, Andreessen Horowitz, and DST, while Coatue, NVIDIA, and Google have joined as new backers. AI coding platform, Cursor, has raised $2.3 billion in a Series D funding round, taking the company to a $29.3 billion post-money valuation, the AI-powered code editor startup announced on Thursday. The round includes participation from existing investors Accel, Thrive, Andreessen Horowitz, and DST, while Coatue, NVIDIA, and Google have joined as new backers. The company said the fresh capital will support its ongoing research and product expansion. "This funding will allow us to invest deeply in our research and build Cursor's next magical moments," the company said. Cursor, which set out two years ago to build an AI-native development environment, said its long-term goal has been to create "a code editor that is more helpful, delightful, and fun than the world has ever seen," and an environment where "it's impossible to write bugs." The startup has scaled to over 300 engineers, researchers, designers, and operators, with plans to grow further. Cursor also reported crossing $1 billion in annualised revenue, claiming "millions of developers and many of the world's most accomplished engineering organisations" as customers. According to the company, its in-house models now generate more code than almost any other LLMs in the world. Cursor said the Series D marks the next phase in its effort to transform how software is written. "We're obsessed with the magical moments in the history of programming with AI," the team said, adding that "the ceiling is high for how great Cursor can become, and much work remains." The announcement comes as new academic research tracks Cursor's impact inside engineering teams. A study by Suproteem Sarkar, assistant professor of finance and applied AI at the University of Chicago, found that companies merged 39% more pull requests after Cursor's agent became the default mode. The study compared early Cursor users with organisations that had not adopted the tool. According to the research, senior developers are more likely to accept agent-written code changes. "For every standard deviation increase in experience, we see a corresponding increase in the rate of agent acceptances," Sarkar found. The study also noted that experienced developers are more likely to plan tasks before generating code. Cursor said the findings reflect how developers are learning to work with AI systems. The company noted that revert rates did not change significantly and bugfix rates slightly decreased, suggesting stable code quality.

Cursor raises $2.3 billion at $29.3 billion valuation, up 12x since January - WSJ By Investing.com

Investing.com -- AI coding tool maker Cursor has secured $2.3 billion in funding at a $29.3 billion valuation, representing nearly 12 times the company's value from January, according to a report from the Wall Street Journal. The funding round was co-led by existing investor Accel and new investor Coatue. Other previous backers including Thrive Capital and DST Global also participated in what marks Cursor's third funding round this year. The startup added strategic investors Google and Nvidia to "deepen the partnership," according to Cursor co-founder and CEO Michael Truell. Google provides AI services and cloud computing to Cursor, while Nvidia serves as an enterprise customer. Cursor has reportedly turned down acquisition offers from several major AI companies, according to sources familiar with the situation. This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Code-gen startup Cursor valuation nearly triples to $30 billion in latest funding round

(Reuters) -Code-generation startup Cursor nearly tripled its valuation to $29.3 billion in five months after raising $2.3 billion in its latest funding round, as artificial intelligence companies continue to attract investor attention. The Series D funding round was led by new investor Coatue, an investment management firm, and existing investor Accel, Cursor said in a blog post on Thursday. Fresh investors Nvidia and Alphabet's Google also participated in the round. AI firms have dominated private funding markets this year, with global venture funding in the third quarter increasing 38% year-over-year to $97 billion, about half of which went to AI companies, according to data from Crunchbase. A surge in investor appetite for AI-linked firms also helped drive Wall Street's benchmark indexes to record highs this year. The San Francisco-based company raised $900 million in June at a $9.9 billion valuation, attracting backing from investors, including Thrive Capital, Andreessen Horowitz and Accel. The company has crossed $1 billion in annualized revenue, with sales-led revenue increasing 100-fold since the beginning of 2025, Cursor said in a mailed statement to Reuters. Cursor, which develops tools to autonomously generate and complete code, said the latest funding round will be used to invest in its research efforts. Code-generation startups are attracting sky-high valuations as businesses explore artificial intelligence-based solutions to enhance or replace traditional software development roles. However, investor concerns that valuations of AI companies may have outpaced fundamentals intensified after SoftBank Group offloaded its $5.8 billion stake in Nvidia earlier in the week. (Reporting by Pritam Biswas in Bengaluru; Editing by Vijay Kishore)