Coding Assistant Cursor raises $2.3 billion five months after its previous round

Developer AI Cursor’s crypto tool continues to gobble up venture capital as its valuation continues to soar.

On Thursday, Cursor announced a $2.3 billion financing round that valued the company at $29.3 billion, as originally reported by The Wall Street Journal. The round more than doubles the company’s previous valuation of $9.9 billion, which it achieved in a $900 million Series C round in June.

This latest fundraiser was led by Accel, an existing investor, and Coatue, a new company on the cap table. Strategic investors, including Nvidia (an enterprise client) and Google (an AI model supplier), also joined the round.

Joshua Kushner’s Thrive Capital led the company’s previous two rounds and participated in this round as well.

Michael Troll, co-founder and CEO of Cursor, told the Wall Street Journal that capital from the round will be directed toward developing Composer, an artificial intelligence model that Cursor launched in October.

Cursor still relies on external AI models from companies including Google, OpenAI and Anthropic to power its platform, but the plan is for Composer to shoulder some of that burden in the future.

Next year could be an interesting one for Cursor. While the company continues to see strong growth, both OpenAI and Anthropic are working to improve their AI coding products as the market for AI development tools remains competitive.