Anysphere, the company behind the AI coding assistant Cursor, has successfully raised $900 million in its latest funding round, achieving a remarkable valuation of $9.9 billion. This funding round, which was initially reported by Bloomberg, was led by Thrive Capital and included contributions from notable investors such as Andreessen Horowitz, Accel, and DST Global. Speculation about this deal had been circulating in the weeks leading up to the announcement.
Rapid Growth and Revenue Surge
Bloomberg has referred to Anysphere as “the fastest growing startup ever.” The San Francisco-based company, founded just three years ago, has reportedly surpassed $500 million in annual recurring revenue, a significant increase from the $300 million reported earlier this year.
Key takeaways
- Anysphere, the company behind AI coding assistant Cursor, raised $900 million at a $9.9 billion valuation, led by Thrive Capital with Andreessen Horowitz, Accel and DST Global.
- Bloomberg described it as the fastest growing startup ever; the San Francisco company was three years old.
- Annual recurring revenue passed $500 million, up from $300 million earlier the same year.
- It completed three funding rounds in under a year: a $60 million Series A, a $105 million Series B in December at a $2.6 billion valuation, then this round.
- OpenAI reportedly considered acquiring Anysphere before agreeing to buy rival coding tool Windsurf for approximately $3 billion, its largest acquisition to date.
Frequent Funding Rounds
Investors have shown strong interest in Anysphere, with the company completing three funding rounds in less than a year. In December, Anysphere raised $105 million in a Series B round led by Thrive Capital, which valued the company at $2.6 billion. This followed a $60 million Series A round just four months prior.
Significant Investment in AI Coding Tools
The rise of AI-powered coding tools has attracted considerable investment, as these technologies are increasingly adopted by large enterprises to enhance developer efficiency. This trend has also sparked interest in mergers and acquisitions within the sector. Recently, OpenAI announced plans to acquire the AI-assisted coding tool Windsurf for approximately $3 billion, marking its largest acquisition to date.
AI Funding Landscape
OpenAI reportedly considered acquiring Anysphere before opting for Windsurf. The AI sector continues to attract substantial funding, with a recent report indicating that AI led venture funding in the first quarter of 2025, totaling $59.6 billion. This quarter marked the highest level of investment in AI to date, accounting for 53% of global venture funding.
Frequently asked questions
Why are AI coding tools commanding these valuations?
Large enterprises are adopting them to raise developer productivity, which makes the return measurable in a way most AI products are not. Revenue growth from $300 million to $500 million within a year reflects that.
What does the Windsurf acquisition signal?
That the category is consolidating as well as growing. OpenAI paying roughly $3 billion — its largest acquisition — indicates the major labs see coding assistants as strategic rather than peripheral.
How quickly did the valuation move?
From $2.6 billion in December to $9.9 billion, roughly a fourfold increase in about six months, across three rounds completed in under a year.
