San Francisco based AI startup Anysphere, the developer of the fast rising AI code editor Cursor, has secured $900 million in a fresh funding round, pushing its valuation to $9 billion.
The round was led by Thrive Capital, with additional support from major firms including Andreessen Horowitz (a16z) and Accel.
What Is Cursor and Why Does It Matter?
Cursor is an AI powered coding assistant built directly into a modern code editor. Designed to help developers write, debug, and understand code using natural language, it turns everyday programming tasks into smooth, conversational workflows.
Explosive Growth in Under Two Years
Cursor’s growth has been nothing short of phenomenal. In just six months, its annual recurring revenue (ARR) surged from $48 million to over $200 million a nearly 300% increase.
Today, Cursor is reportedly helping developers generate over 1 billion lines of code per day, and it’s already being used by engineering teams at companies like OpenAI, Stripe, and Spotify.
From $400M to $9B: A Startup on Fire
Anysphere’s valuation trajectory shows how hot the AI application layer has become:
August 2024: $400 million
December 2024: $2.6 billion
June 2025: $9 billion
Rising Above the Competition
While Cursor competes with major players like GitHub Copilot, Codeium, and Replit, its clean UI, lightweight performance, and seamless developer experience have helped it stand out.
Some in the developer community have dubbed the new generation of AI coding “vibe coding” building software by co-creating with AI in real time. Cursor is at the heart of that movement.
What’s Next for Anysphere?
With this massive investment, Anysphere plans to:
Expand its engineering and support teams
Introduce advanced collaboration and debugging tools
Strengthen its enterprise offerings
Scale Cursor globally and accelerate product iterations
