Cursor Raises $900M at $9B Valuation
Anysphere has raised $900 million in Series C funding at a $9 billion valuation for Cursor, its AI-first code editor. The round was led by Thrive Capital with participation from Andreessen Horowitz and Stripe.
Anysphere, the company behind the AI-first code editor Cursor, has raised $900 million in a Series C round that values the company at $9 billion. The round was led by Thrive Capital, with participation from existing investors Andreessen Horowitz, Stripe, and OpenAI Startup Fund.
Cursor has become the fastest-growing developer tool in recent memory, growing from zero to over 2 million monthly active users in less than two years. The editor, built as a fork of VS Code with deep AI integration, has become the tool of choice for developers who want AI assistance throughout their entire coding workflow.
The funding will be used to expand Cursor's Agent mode, which can autonomously complete multi-file coding tasks, and to build enterprise features including team collaboration, custom model integration, and code security scanning. Anysphere is also investing in its own AI models optimized specifically for code understanding and generation.
Cursor's revenue has grown to an estimated $300 million annual run rate, driven by its $20/month Pro plan and $40/month Business plan. The company reports that Cursor users write code 2-3x faster than with traditional editors and that the tool has become essential for both startups and large engineering organizations.
The massive valuation reflects the high-stakes battle for the AI coding tools market, which analysts project will reach $30 billion by 2028. Cursor competes with GitHub Copilot, Windsurf, and other AI-enhanced development environments.
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