Coding assistant Cursor raises $2.3B 5 months after its previous round

AI coding tool developer Cursor continues to gobble up venture capital as its valuation continues to rise.

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

This latest fundraising was led by Accel, an existing investor, and Coatue, who is new to the cap table. Strategic investors including Nvidia (an enterprise customer) and Google (an AI modeling provider) also joined the round.

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

Cursors co-founder and CEO Michael Truell told the Wall Street Journal that the round’s capital will be spent on developing countries. Composeran AI model released by Cursor in October.

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

Next year could be a very interesting year for Cursor. While the company continues to experience strong growth, OpenAI and Anthropic are sharpening their AI coding products as the market for AI development tools becomes increasingly competitive.