Cursor’s Anysphere nabs $9.9B valuation, soars past $500M ARR

Anysphere, the innovative developer behind the AI coding assistant Cursor, has successfully secured $900 million in funding, propelling its valuation to an impressive $9.9 billion, according to Bloomberg. This funding round was spearheaded by Thrive Capital, with notable contributions from Andreessen Horowitz, Accel, and DST Global. This marks Anysphere's third significant fundraising effort within a year. The startup, just three years old, previously raised $100 million at a pre-money valuation of $2.5 billion late last year, as first reported by TechCrunch. AI coding assistants, commonly known as 'vibe coders,' have rapidly gained traction, with Cursor at the forefront of this trend. Anysphere's annual recurring revenue (ARR) is reportedly doubling every couple of months, reaching over $500 million, a 60% growth from the $300 million figure disclosed in mid-April. Cursor provides a tiered pricing model for developers, starting with a two-week free trial before transitioning users to paid subscriptions, available at $20 for the Pro version or $40 for a monthly business plan. Previously reliant on individual user subscriptions for the bulk of its revenue, Anysphere is now introducing enterprise licenses, enabling companies to acquire the application for their teams at a premium. Earlier this year, Anysphere declined acquisition offers from OpenAI and other interested parties, even as the creator of ChatGPT reportedly purchased another fast-growing AI assistant, Windsurf, for around $3 billion.