Anysphere Secures $900 Million in Funding, Valuation Soars to $9.9 Billion

New Investment Round Led by Thrive Capital

Anysphere, the innovative company behind the AI coding assistant Cursor, has successfully raised $900 million, achieving a striking valuation of $9.9 billion, according to a recent report by Bloomberg. This impressive funding round was spearheaded by Thrive Capital, with additional investment from prominent firms including Andreessen Horowitz, Accel, and DST Global.

Rapid Growth and Previous Funding Success

This latest funding round marks Anysphere’s third capital infusion within a year. The startup, founded just three years ago, previously secured $100 million at a pre-money valuation of $2.5 billion late last year, as reported by TechCrunch.

Cursor: Leading the Charge in AI Coding Assistance

AI coding assistants, commonly known as “vibe coders,” have quickly become one of the most sought-after applications of artificial intelligence, with Cursor at the forefront of this burgeoning market. According to sources familiar with the company, Anysphere’s annualized revenue (ARR) has been experiencing remarkable growth, reportedly doubling approximately every two months. As of now, the company has exceeded $500 million in ARR, marking a notable 60% increase from the $300 million reported in mid-April.

Diverse Pricing Models for Developers

Cursor provides developers with a versatile range of pricing options. After an initial two-week free trial, users can transition to paid subscriptions, choosing between a $20 monthly professional plan or a $40 monthly business tier.

Shifts in Revenue Sources: From Individual to Enterprise Licensing

Historically, Anysphere’s financial success relied heavily on individual user subscriptions. However, the company is now expanding its offerings by introducing enterprise licenses, which allow organizations to purchase the application for their teams at a premium price. This strategic pivot aims to capture the growing demand for effective coding solutions among larger teams.

Strategic Decisions and Market Positioning

Earlier this year, Anysphere received acquisition offers from industry giants, including OpenAI. However, the startup opted to decline these proposals. Notably, OpenAI recently acquired Windsurf, another rapidly emerging AI assistant, for an estimated $3 billion, intensifying competition in this dynamic sector.

This significant funding and continued growth position Anysphere and Cursor firmly among the leaders in the AI technology landscape, providing developers with powerful tools to enhance their coding experience while securing a competitive edge in the market.