Cursor AI Hits $9.9B Valuation, $500M ARR

Massive Funding Round Propels AI Coding Assistant to New Heights

Anysphere, the AI-powered coding assistant behind Cursor, has achieved a staggering $9.9 billion valuation after securing $900 million in funding. The investment round was spearheaded by Thrive Capital, with participation from top-tier firms including Andreessen Horowitz, Accel, and DST Global.

Rapid Growth in the AI Coding Space

This marks Anysphere’s third funding round in under 12 months, demonstrating exceptional momentum in the competitive AI development tools market. Just six months prior, the company raised $100 million at a $2.5 billion valuation – representing a nearly 4x valuation jump in half a year.

The company’s annual recurring revenue (ARR) has surpassed $500 million, growing at breakneck speed with reported doubling every two months. This represents a 60% increase from the $300 million ARR reported in April 2025.

Cursor’s Business Model and Pricing Strategy

The AI coding assistant offers developers flexible subscription options:

• 14-day free trial period
• $20/month Pro plan for individual developers
• $40/month Business plan for teams

While initially focused on individual users, Anysphere has strategically expanded into enterprise offerings, providing customized licensing options for larger development teams.

Turning Down Acquisition Offers

Earlier this year, Anysphere reportedly declined acquisition interest from OpenAI and other potential buyers. This decision appears justified as the company continues its independent growth trajectory, while OpenAI ultimately acquired competitor Windsurf for $3 billion.

Cursor’s success highlights the massive demand for AI-powered developer tools, with the platform emerging as a leader in the “vibe coder” category that’s transforming software development workflows.