Cursor Powers Anysphere’s Valuation Surge to $9.9 billion After Massive Funding Round

Anysphere, the company behind the AI-powered coding assistant Cursor, has reached a major milestone. It recently raised $900 million in new funding, boosting the valuation of Anysphere, the company behind Cursor, to an incredible $9.9 billion, as reported by Yahoo Finance.

The latest funding round was led by Thrive Capital, a previous investor in the company. Big names like Andreessen Horowitz, Accel, and DST Global also joined in. This is the third time in less than a year that Anysphere has raised money, showing just how fast the company is growing in the tech world.

Cursor’s Fast Growth and Rising Revenue

Anysphere was founded just three years ago, but it has already made a big impact. Its main product, Cursor, is an AI coding assistant that helps software developers write code faster and more easily. Instead of writing every line of code manually, developers can simply describe what they want, and Cursor writes the code for them.

This tool has become very popular among developers as it saves time and improves productivity. Many professionals have already started using it regularly, as Cursor is now seen as one of the tops AI tools in software development.

Cursor has reached over $500 million in annual recurring revenue (ARR). This is a huge jump from the $300 million ARR it had just a few months ago. A source told TechCrunch that Anysphere’s revenue has doubled every two months.

At first, most of Anysphere’s money came from individual users. After a free two-week trial, users could pay $20 per month for a Pro plan or $40 for a business plan. Now, the company has started selling licenses to big companies, allowing teams to use Cursor at a higher price.

Why Investors Are Betting Big on Cursor

Anysphere’s recent $900 million funding round shows that investors believe strongly in its future. Thrive Capital led the round, and other top firms like Andreessen Horowitz and Accel also participated. These investors usually support fast-growing, promising startups, and Anysphere fits that profile.

This funding came just months after Anysphere raised $100 million at a $2.5 billion valuation. In less than a year, its value has nearly quadrupled. That kind of rapid growth is rare and impressive, even in the fast-changing world of AI startups.

The new money will likely help the company grow even more. Anysphere is expected to use it to hire more people, improve the Cursor product, and expand into new markets. As more companies look for smart AI tools, Cursor wants to stay ahead of its competitors.

Earlier this year, Anysphere reportedly got buyout offers from other tech giants, including OpenAI, but it chose to remain independent. This shows that Anysphere believes it can grow much bigger on its own.

Cursor’s Place in the AI Coding Assistant Market

Sometimes called a “vibe coder,” Cursor lets users give simple instructions like “fix this bug” or “add login support,” and it writes the necessary code. This makes programming faster and easier for both beginners and professionals.

Anysphere has worked hard to make Cursor simple to use. It fits easily into existing tools like Visual Studio Code, which many developers already use. This has helped it become popular among well-known companies like Stripe, Spotify, and even OpenAI.

There’s growing competition in the AI coding space. Big names like OpenAI, Google, and Anthropic are also building coding assistants. But Cursor’s fast revenue growth and strong support from users help it stand out from the crowd.

As more companies want to build software faster and more efficiently, tools like Cursor are becoming more important. With its strong financial backing, rapid revenue growth, and loyal customers, Anysphere is well-positioned to lead the AI coding assistant market in the years to come.