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

Record-Breaking Funding Round

AI coding assistant Cursor has reached stratospheric heights as parent company Anysphere secured a $900 million funding round at a $9.9 billion valuation. According to Bloomberg, the round was spearheaded by Thrive Capital with participation from Andreessen Horowitz, Accel, and DST Global.

Exponential Growth Timeline

This marks Anysphere’s third funding round in under 12 months. The 3-year-old startup previously raised $100 million at a $2.5 billion valuation in late 202X, as first reported by TechCrunch. The company’s valuation has nearly quadrupled in just six months.

Dominating the AI Coding Assistant Market

Vibe coders like Cursor have become one of AI’s most impactful enterprise applications. Sources reveal the company’s Annual Recurring Revenue (ARR) has been doubling every two months, recently surpassing $500 million – a 60% jump from $300 million in April 2025.

Flexible Pricing Strategy

Cursor attracts developers with:

• 2-week free trial
• $20/month Pro plan
• $40/month business subscription

Enterprise Expansion

While initially focused on individual subscriptions, Cursor is now aggressively pursuing enterprise clients. The company offers customized licenses for teams, creating a new high-margin revenue stream that complements its strong individual user base.

Strategic Independence

Despite acquisition interest from OpenAI and other tech giants, Anysphere chose to remain independent. OpenAI subsequently acquired competitor Windsurf for $3 billion, highlighting the intense competition in the AI coding assistant space.

With rapid revenue growth, strong investor backing, and clear market leadership, Cursor appears poised to reshape how developers interact with AI in their daily workflows.