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Artificial intelligence startup Cursor announced Thursday that it has closed a $2.3 billion funding round at a post-money valuation of $29.3 billion, nearly triple its valuation at its previous raise in June.
At 4:30 PM ET, Cursor CEO Michael Truell joins “Closing Bell: Overtime” to discuss the funding round. Watch in real time on CNBC+ or CNBC Pro streams.
Cursor has built a popular AI coding tool that helps software developers generate, edit, and review code. Our parent company, Anysphere, is an applied research institute founded in 2022.
Cursor is one of the few AI startups valued at over $10 billion, including OpenAI, Anthropic, xAI, Safe Superintelligence, and Thinking Machines.
Investors include Accel, Thrive Capital, Andreessen Horowitz, DST Global, Coatue, Nvidia and google The company participated in its latest round of funding, according to a blog post.
“This funding will allow us to invest deeply in research and build Cursor’s next magical moment,” Cursor said.
Since the tool was first introduced in 2023, annual revenue has grown to more than $1 billion and the number of employees has ballooned to more than 300 people, Cursor said.
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 models generate more code than “almost” the world’s largest language models.
The coding tools market has become even more crowded in recent months as AI use cases have proven lucrative. Cursor competes with companies such as OpenAI, Anthropic, and Cognition, which acquired AI coding startup Windsurf in July.
OpenAI approached Anysphere about the possibility of acquiring Cursor earlier this year, but as CNBC previously reported, the deal failed to gain traction. OpenAI also briefly held talks to acquire Windsurf before ultimately introducing its own coding tool called Codex in May.
Anthropic announced in September that 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 had annual recurring revenue of $82 million, Cognition said in a blog post at the time.
“We often talk internally about how high the ceiling is for how good Cursor can be, and how much work remains to get there,” Cursor said.
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