The AI coding tool developer Cursor continues to attract significant venture capital as its valuation climbs to new heights. On Thursday, Cursor announced a new funding round of 2.3 billion dollars. This investment values the company at 29.3 billion dollars.
This latest round more than doubles the company’s previous valuation of 9.9 billion dollars, which was established in its 900 million dollar Series C round last June.
The most recent fundraise was co-led by Accel, an existing investor, and Coatue, a new investor. Strategic investors also joined the round, including Nvidia, which is an enterprise customer, and Google, which is an AI model supplier. Joshua Kushner’s Thrive Capital, which led the company’s prior two funding rounds, also participated in this new round.
Cursor’s co-founder and CEO Michael Truell stated that the new capital will be used to develop Composer, an AI model released by the company in October. Currently, Cursor still relies on external AI models from companies like Google, OpenAI, and Anthropic to power its platform. The future plan is for Composer to eventually handle some of that workload.
Next year promises to be a very interesting period for Cursor. While the company is still experiencing strong growth, competitors like OpenAI and Anthropic are both enhancing their own AI coding products. This comes as the market for AI development tools becomes increasingly competitive.