Cursor AI Hits $9.9B Valuation, $500M ARR
AI Coding Assistant Lands Massive $900M Funding Round
Anysphere, creator of the groundbreaking Cursor AI coding assistant, has secured $900 million in funding at a staggering $9.9 billion valuation according to Bloomberg. The financing round was led by Thrive Capital with participation from top-tier investors including Andreessen Horowitz, Accel, and DST Global.
Record-Breaking Growth Trajectory
This marks Anysphere’s third funding round in under 12 months, showcasing unprecedented momentum in the AI developer tools sector. The company’s valuation has skyrocketed from $2.5 billion in late 2024 to nearly $10 billion today – a 300% increase in just seven months.
Revenue Growth Defying Expectations
Cursor’s financial performance is rewriting the rulebook for startup scaling:
- $500M ARR (60% growth since April 2025)
- Revenue doubling every two months
- Enterprise adoption now supplementing strong individual subscriptions
The Cursor Business Model
The AI coding platform operates on a freemium model:
- 2-week free trial
- $20/month Pro plan for individual developers
- $40/month Business tier for teams
- Custom enterprise licensing options
Turning Down Major Acquisition Offers
Anysphere recently declined acquisition interest from OpenAI and other tech giants, choosing to remain independent. This decision came shortly before OpenAI purchased competitor Windsurf for $3 billion, highlighting the heated competition in the AI coding assistant space.
The company’s remarkable valuation and revenue milestones position Cursor as not just another coding tool, but as a transformational platform shaping the future of software development. With its exponential growth showing no signs of slowing, Cursor is setting new benchmarks for what’s possible in enterprise AI adoption.