Artificial intelligence startup Cursor on Thursday announced it has closed a $2.3 billion funding round at a $29.3 billion post-money valuation, nearly triple what it was worth as of its last raise in June.
Cursor built a popular AI coding tool that helps software developers generate, edit and review code. It initially launched as a product within the applied research lab Anysphere, which 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.
Since the tool first launched in 2023, Cursor said it has crossed $1 billion in annualized revenue and swelled to more than 300 employees.
Nvidia CEO Jensen Huang called the company his “favorite enterprise AI service” in an interview on CNBC’s “Squawk Box” in October.
The company said its in-house models generate more code than “almost” any other large language models in the world.
Cursor CEO Michael Truell told CNBC the startup is not looking to IPO anytime soon.
“Our immediate focus is on building out the company and growing the team, and we have a lot more to do there before thinking about anything like going public,” he said on “Closing Bell: Overtime” on Thursday.
The coding tool market has grown more crowded in recent months as it’s proved to be a lucrative AI use case. Cursor competes with companies like OpenAI, Anthropic and Cognition, which acquired the AI coding startup Windsurf in July.
OpenAI approached Anysphere earlier this year about potentially purchasing Cursor, but the deal failed to gain traction, as CNBC previously reported. OpenAI was also briefly in talks to acquire Windsurf before ultimately introducing its own coding tool called Codex in May.
In September, Anthropic said its coding tool Claude Code has already generated more than $500 million in run-rate revenue for the company since its full launch in May. As of July, Windsurf was generating $82 million in annual recurring revenue, Cognition said in a blog post at the time.
“Internally, we often talk about how high the ceiling is for how great Cursor can become, and how much work still remains to get there,” Cursor said.
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