Anysphere, the Columbia University-launched deep technology company that developed the AI coding assistant Cursor, has raised $900 million. All of this blue sky has pushed its valuation to an incredible $9.9 billion. Anysphere recently wrapped up its third fundraising round in less than a year. This latest round is another testament to the company’s explosive growth as the AI arms race continues to heat up.
This recent round of funding comes on the heels of an earlier successful raise of $100 million at a pre-money valuation of $2.5 billion. While Anysphere’s fundraising efforts are indeed noteworthy, the funding itself illustrates a troubling trend. The company has reportedly gone so far as to reject acquisition offers from top industry players, including OpenAI. This decision highlights Anysphere’s dedication to preserving its independence and staying focused on iterating its flagship product, Cursor.
That’s why Cursor has quickly become a category leader in the AI coding assistant space. This category has quickly become one of the most visible and popular use cases of artificial intelligence. What really sets Cursor apart from competitors, though, are the features designed specifically for developers. It provides affordable, tiered pricing, beginning with a pro plan ($20/month) and business subscription ($40/month). Plus, new users can try out all Cursor’s features with a two-week free trial and only pay for a plan after that period.
Anysphere’s annualized recurring revenue (ARR) tells the story of their Brobdingnagian rise in the market so far. The company’s ARR has now crossed the half-billion-dollar mark, an incredible 60% jump from the $300 million ARR they announced in mid-April. Anysphere’s revenue has been doubling every two months. This record-level growth reflects just how quickly developers are adopting AI-assisted coding, or software development.
Anysphere is quickly building a reputation as one of the most-fun, fastest growing startups in recent history. The need for AI coding assistants such as Cursor is at an all-time high. Developers are adopting these tools at an accelerating pace to increase their own productivity and make coding more intuitive and less burdensome.
Anysphere continues to iterate and develop new features and content, and regularly adds new languages. This moves the company deeper into the lucrative space of AI-Powered development tools. The company is able to lure considerable risk capital. Yet, at the same time, it maintains an unprecedented focus on product development, which portends a very great future.
