Cursor raises $2.3B Series D at $29.3B valuation

AI coding assistant Cursor has raised $2.3 billion in a large Series D round, taking its valuation to $29.3 billion. The company plans to use the capital to build its in-house AI models and expand its product capabilities.

Funding details: $2.3Bn USD (Series D)

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AI-powered coding assistant Cursor has raised $2.3 billion in a Series D funding round, valuing the company at $29.3 billion. The raise comes just five months after its previous funding and more than doubles its earlier valuation, reflecting strong investor appetite for AI-powered developer tools. The funding was first reported by the Wall Street Journal and later covered by TechCrunch.

The round was co-led by existing investor Accel and new investor Coatue. Strategic investors including Nvidia, which is also a customer of Cursor, and Google, an AI model supplier to the platform, joined the round. Thrive Capital, led by Joshua Kushner and the lead investor in Cursor’s previous two rounds, also participated, along with Andreessen Horowitz.

Cursor co-founder and CEO Michael Truell said the new capital will be used primarily to advance Composer, the company’s in-house AI model launched in October. While Cursor currently relies on external models from companies such as Google, OpenAI, and Anthropic, the company expects Composer to take on a larger share of the workload over time.

Cursor has grown rapidly, expanding to a team of more than 300 employees and crossing $1 billion in annualized revenue. As competition intensifies from major AI companies building their own coding tools, Cursor is betting that deeper investment in proprietary AI research will help it maintain its lead.