Introduction
Investor interest in AI-powered coding assistants continues to surge, with Cursor's developer, Anysphere, now in discussions to raise funds at an impressive valuation nearing $10 billion, according to a recent report from Bloomberg.
Recent Funding History
This funding round, if finalized, would follow just three months after Anysphere raised $100 million at a valuation of $2.5 billion—a deal first reported by TechCrunch. Thrive Capital, a returning investor, is expected to lead the new round, signaling continued confidence in Cursor's rapid growth and potential.
Neither Thrive Capital nor Anysphere have publicly commented on these ongoing negotiations.
Valuation Growth Trends
Anysphere's valuation has seen dramatic growth, reflecting broader trends in AI investments. Previously valued at 25 times its annualized recurring revenue (ARR) of $100 million, the new valuation would set the company at about 66 times its current ARR, estimated at approximately $150 million by The Information.
Industry Comparisons
Cursor isn't alone in attracting such ambitious valuations. Codeium, the company behind the AI coding editor Windsurf, recently sought capital at a nearly $3 billion valuation, approximately 70 times its $40 million ARR. Kleiner Perkins led that investment round, further highlighting the sector's momentum.
Future Outlook
Investor enthusiasm remains robust as AI-driven coding tools outpace adoption in other fields, such as sales, law, and healthcare. Recent reports indicate increased investor interest in another AI coding firm, Poolside, which is developing its own large language model (LLM). Poolside has yet to comment publicly on potential fundraising activities.
The rapid influx of capital underscores the significant role AI is playing in reshaping software development, positioning companies like Anysphere at the forefront of this transformative wave.
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