Cursor in talks to raise at a $10B valuation as AI coding sector booms | TechCrunch
Mar 08, 2025 - techcrunch.com
Investor interest in AI coding assistants is surging, with Anysphere, the developer of AI-powered coding assistant Cursor, reportedly in talks to raise capital at a valuation of nearly $10 billion. This potential round comes just three months after Anysphere's previous $100 million fundraise at a $2.5 billion valuation. The new round is expected to be led by returning investor Thrive Capital. Anysphere's annualized recurring revenue (ARR) may have increased to $150 million, suggesting a valuation of 66 times ARR. This trend of high valuations is not unique to Anysphere; Codeium, another AI coding company, is raising funds at a $3 billion valuation, approximately 70 times its $40 million ARR.
AI is rapidly advancing in coding tools, surpassing its adoption in other sectors like sales, law, and healthcare. Investors are also showing interest in Poolside, another AI-powered coding company developing its own large language model (LLM). This heightened investor interest highlights the growing importance and potential of AI in the coding industry.
Key takeaways:
Anysphere is in talks to raise capital at a valuation of nearly $10 billion, just three months after a previous fundraise at a $2.5 billion valuation.
The new funding round for Anysphere is expected to be led by returning investor Thrive Capital.
Codeium is also raising capital at a valuation of nearly $3 billion, with Kleiner Perkins leading the round.
Investor interest in AI coding tools is growing rapidly, outpacing other sectors like sales, law, and healthcare.
