Anysphere Soars to New Heights: AI Coding Assistant Cursor Hits $9.9 Billion Valuation

Anysphere, the innovative force behind the AI coding assistant Cursor, has officially secured $900 million in a funding round that arms its valuation at an impressive $9.9 billion, as reported by several financial outlets. This funding spree was spearheaded by Thrive Capital, with contributions from notable investors including Andreessen Horowitz, Accel, and DST Global.

This latest investment marks Anysphere’s third major fundraising event within a single year. Just last year, the three-year-old startup managed to attract $100 million, bolstering its valuation to $2.5 billion, confirming its status as one of the fastest-growing tech firms in the industry. AI coding assistants, often referred to as “vibe coders,” are increasingly gaining traction, with Cursor emerging as a frontrunner in this expanding category.

The surge in Anysphere’s annual recurring revenue (ARR) is particularly noteworthy. Information from industry insiders indicates that the company has been doubling its ARR approximately every two months, reaching a staggering $500 million, a 60% uptick from previously reported figures of $300 million earlier this year.

Cursor’s strategy revolves around tiered pricing for developers. Users have the opportunity to experience a two-week free trial before transitioning to a paid model, which features a $20 Pro option or a $40 monthly business subscription. Historically, most of Anysphere’s revenue originated from individual subscriptions, which is now poised for change as the startup begins to offer enterprise licenses for corporate clients seeking to purchase the software for larger teams and at a premium price.

Interestingly, the company recently declined acquisition proposals from tech giants, including OpenAI, who expressed interest in acquiring Cursor. OpenAI ultimately chose to acquire Windsurf, another rapidly growing AI assistant, for approximately $3 billion. As the AI landscape continues to evolve, Anysphere remains resolute in its goals of redefining coding assistance through its innovative offerings.

For further insights into AI’s transformative impact, check out our blog on the latest trends in AI tools.