Anysphere's Cursor AI Coding Tool Sparks Investor Frenzy, Nearing $10 Billion Valuation

AI startup Anysphere in negotiation for near $10 billion valuation - Bloomberg News By Investing.com

Investing.com -- Anysphere Inc., the startup responsible for the creation of the artificial intelligence-powered code editor, Cursor, is reportedly in negotiation to raise hundreds of millions from investors at a valuation approaching $10 billion, as reported by Bloomberg, citing sources who wished to remain anonymous. The funding round is anticipated to be led by Thrive Capital. However, the discussions are not yet finalized and the specifics may still shift. Anysphere's Cursor has proven to be a successful coding tool, with the startup exceeding $100 million in annual recurring revenue within a year. This achievement has placed Anysphere among the fastest-growing startups ever. The company's valuation was previously set at $2.5 billion during a funding round announced in January.

Cursor in talks to raise at a $10B valuation as AI coding sector booms | TechCrunch

Investor interest in AI-coding assistants is exploding. Anysphere, the developer of AI-powered coding assistant Cursor, is in talks with venture capitalists to raise capital at a valuation of nearly $10 billion, Bloomberg reported. The round, if it transpires, would come about three months after Anysphere completed its previous fundraise of $100 million at a pre-money valuation of $2.5 billion, as TechCrunch was first to report. The new round is expected to be led by returning investor Thrive Capital. Thrive Capital and Anysphere didn't immediately respond to a request for comment. While Anysphere's previous round valued the company at 25 times its $100 million ARR (per the New York Times), investors seem to be willing to value fast-growing companies at even higher multiples now. Anysphere's current annualized recurring revenue (ARR) may have already climbed to $150 million, the Information reported, which means the new deal, should it happen would be a whopping 66 times ARR. Anysphere isn't the only company receiving such a high valuation from investors. Codeium, a company behind AI coding editor Windsurf, is raising capital at a valuation of nearly $3 billion, TechCrunch reported last month. Kleiner Perkins, which is leading the round into Codeium, valued the company at about 70 times ARR of about $40 million. AI is adapting fastest in coding tools, outpacing its use in sales, law, healthcare, and other sectors, according to investors. In recent weeks, investors have been approaching Poolside, another AI-powered coding company that is also developing its own LLM, sources tell TechCrunch and the Information. Poolside didn't immediately respond to a request for comment.