AI Startup Anysphere Raises $900M, Approached with $18B Valuation Offer
Anysphere Inc., the developer of the popular artificial intelligence code editor Cursor, has been approached by investors about a deal that would double its valuation in a new funding round, according to a person familiar with the matter. The offer arrives shortly after the startup, which launched in 2023, surpassed $500 million in annualized revenue.
While the company has not initiated the conversations, it could choose to add more capital to its balance sheet given the favorable terms. Earlier this month, Anysphere announced it raised $900 million at a valuation of $9.9 billion, including the new investment, in a round led by Thrive Capital. Andreessen Horowitz, Accel, and DST Global also participated.
The tools offered by Cursor make it easier for people without technical expertise to create computer programs, a trend sometimes called vibe coding, as well as making regular software developers more efficient. More than half of Fortune 500 companies use Cursor, and more than 1 million people use the service every day.
However, the startup faces fierce competition from other AI-powered code editors like GitHub Copilot and Amazon CodeWhisperer. One of its biggest competitors, Windsurf, has agreed to sell to OpenAI for $3 billion, although the deal has yet to be finalized. Despite the competition, investors are eager to put more capital into what they say is the fastest-growing startup of all time in terms of revenue. The company’s annualized sales have exploded in recent months as Cursor has added more enterprise users, including OpenAI, Spotify Technology SA, Major League Baseball, and Instacart.
CEO Michael Truell said in a message to Bloomberg that the company is not focused on fundraising and has lots to do on building the technology, product, and team. “Cursor can be made much more useful, and we’re spending time on that,” he said.
The rise of Cursor is a testament to the power of artificial intelligence in the tech industry. With its easy-to-use tools and efficient software development capabilities, it is poised to disrupt the traditional coding landscape and pave the way for a new era of software development.
