Cursor, an AI coding tool for developers, continues to eat up venture capital as its valuation continues to rise.
On Thursday, as first reported by the Wall Street Journal, Cursor announced a $2.3 billion funding round, valuing the company at $29.3 billion. The round more than doubles the company’s previous valuation of $9.9 billion, which reached $900 million in a Series C round in June.
This latest funding was co-led by existing investor Accel and new addition to the cap table, Coatue. Strategic investors such as Nvidia (enterprise customer) and Google (AI model supplier) also participated in this round.
Joshua Kushner’s Thrive Capital led the company’s previous two rounds and participated in this round.
Michael Truell, Cursor’s co-founder and CEO, told the Wall Street Journal that the funding from this round will be used to develop Composer, the AI model that Cursor released in October.
Cursor still relies on external AI models from companies like Google, OpenAI, and Anthropic to power its platform, but Composer will take on some of that load in the future.
Next year could be a very interesting year for Cursors. While the company continues to experience strong growth, both OpenAI and Anthropic are strengthening their AI coding offerings as the AI development tools market continues to become more competitive.
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