Developer AI coding tool Cursor continues to swallow venture capital as its valuation continues to soar.
On Thursday, Cursor announced a $2.3 billion funding round, valuing the company at $29.3 billion, as originally reported. wall street journalThe round is more than double the company’s previous valuation of $9,9 billion, which it had achieved during its tenure $900 million Series C round In June.
This most recent fundraise was co-led by Accel, an existing investor, and Coatue, which is new to the cap table. Strategic investors including Nvidia (an enterprise customer) and Google (an AI model supplier) also joined the round.
Joshua Kushner’s Thrive Capital led the company’s previous two rounds and participated in this round as well.
Cursor co-founder and CEO Michael Truel told the Wall Street Journal that the capital from the round will be invested in growth musicianAn AI model released by Cursor in October.
Cursor still relies on external AI models from companies including Google, OpenAI, and Anthropic to power its platform, but there are plans for Composer to shoulder some of that load in the future.
The next year could be very interesting for Cursor. While the company is still seeing strong growth, both OpenAI and Anthropic are ramping up their AI coding products as the market for AI development tools becomes more competitive.
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