AI Coding App Cursor Triples Valuation to $9 Billion in Latest Funding Round
AI Coding App Cursor Triples Valuation to $9 Billion in Latest Funding Round
$900M funding for Cursor - I don't get the hype : r/programming
The AI coding app Cursor, developed by Anysphere, has recently achieved a significant milestone in its valuation. In May 2025, Anysphere closed a new funding round led by Thrive Capital, which more than tripled its valuation to approximately $9 billion. This marks a substantial increase from its previous valuation of $2.5 billion in January 2025.
Cursor has gained immense popularity among computer programmers for its AI-powered software development toolkit, which reportedly writes nearly 1 billion lines of working code daily. The app enhances productivity by allowing developers to use natural language to instruct the AI, rather than manually writing code. This innovative approach has attracted customers from major tech companies such as Stripe, OpenAI, and Spotify.
Despite competition from tools like Microsoft’s GitHub Copilot, Cursor has carved out a niche in the AI coding assistant market. The term "vibe coding," coined by former Tesla and OpenAI engineer Andrej Karpathy, describes the unique experience of using Cursor, where developers enter a trance-like state of interaction with the AI to create software.
The rapid growth in Cursor's valuation reflects the broader trend of increasing investment in AI application developers, as venture capitalists seek opportunities in the AI boom. However, some investors remain cautious about the sustainability of these valuations, given the volatile nature of public markets and the experimental phase many companies are in with AI adoption.
For more detailed information, you can refer to the Financial Times article.
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