AI Startup Cursor’s Valuation Skyrockets to $29.3B Amid Code-Generation Boom

Cursor, an AI-powered code-generation startup, has nearly tripled its valuation to $29.3 billion in just five months following a $2.3 billion funding round led by Coatue Management. The round attracted both existing investors like Accel and new backers including Nvidia and Alphabet's Google, underscoring the intense interest in AI-driven development tools.

The company's revenue trajectory mirrors its valuation surge—annualized revenue now exceeds $1 billion, with sales-led growth exploding 100-fold since early 2025. This follows a $900 million June raise at a $9.9 billion valuation with participation from Thrive Capital, Andreessen Horowitz, and Accel.

Cursor's technology autonomously generates and completes code, positioning it as a potential disruptor of traditional software development. The funding cements its dominance in the code-generation sector, dwarfing competitors like Replit's $3 billion September valuation. As enterprises increasingly automate programming tasks, investors are betting big on AI's capacity to reshape digital product development.