Exclusive: In just 4 months AI coding assistant Cursor raised another $100M at a $2.5B valuation led by Thrive, sources say
Summary
Anysphere, the developer of AI-powered coding assistant Cursor, raised $100 million Series B at a post-money valuation of $2.6 billion, according to sources with knowledge of the deal. But apparently, Anysphere is growing so fast that the existing VC couldnt pass up the opportunity to double down on the bet, even if it took a staggering 6.5 times leap in valuation over a round that was completed just a few months ago. The interest in backing this company, and who would win the deal, has become widely watched by Valley insiders and was flagged by an X account called Arfur Rock.The market for AI-powered coding assistants is crowded with options such as Augment, Codeium, Magic, and Poolside, as it is one of the areas where AI has found a solid, revenue-generating lane. Companies that use Cursor include OpenAI, Midjourney, Perplexity, Replicate, Shopify, and Instacart.Anysphere was co-founded in 2022 by Michael Truell, Sualeh Asif, Arvid Lunnemark, and Aman Sanger while they were students at MIT. Last year, it went through OpenAIs accelerator and raised its seed funding led by OpenAI Startup Fund.Other investors in the company include venture firm Neo, Stripe co-founder Patrick Collison, former GitHub CEO Nat Friedman, and Dropbox co-founder Arash Ferdowsi.Editors note: The previous version of the story erroneously stated that Cursors Series A was co-led by Thrive Capital.