AI coding startup Cursor has secured $2.3 billion in fresh funding, pushing its valuation to $29.3 billion. The San Francisco-based company brought in new investors, including Nvidia, Coatue Management, and Google, while existing supporters such as Accel, Andreessen Horowitz, DST Global, and Thrive Capital also joined the round.
Cursor said it will use the newly raised capital to boost research initiatives and expand its global presence as enterprises rapidly adopt AI-driven developer tools. The company also revealed that it has surpassed $1 billion in annualized revenue and now employs over 300 people.
Founded in 2022 by Michael Truell, Sualeh Asif, Arvid Lunnemark, and Aman Sanger, Cursor offers an AI-native coding environment powered by proprietary models capable of generating, clarifying, and updating code for engineering teams. The startup asserts that it is producing more code via its agentic system than any competing AI product currently available.
This substantial funding comes amid escalating investor enthusiasm for developer-focused AI tools. Cursor’s valuation has tripled within a short span, fueled by strong adoption from engineering teams eager to accelerate software delivery through automated coding workflows.
Analysts believe the new capital will catalyze advanced model development and intensify the company’s enterprise expansion, especially across North America and Europe, where interest in AI coding platforms continues to surge.
