The hype around artificial intelligence has allowed some small startups to grow quickly. But by some estimates, none has grown as fast as Anysphere Inc., maker of the popular AI-powered coding assistant Cursor, which has surpassed $500 million in annual revenue.
The round was led by Thrive Capital, with participation from other investors including Andreessen Horowitz, Accel and DST Global. The new funding brings Anysphere’s total capital raised to $1 billion and marks a sharp increase in its valuation from $2.5 billion to $9.9 billion, announced in the round back in January.
Cursor, launching in 2023, includes an AI-powered code editor that can analyze a programmer's actions and suggest additional lines of code, as well as a chatbot that can answer code-related questions. Users pay for it through monthly subscription plans — Anysphere offers a pro account for $20 for individuals and a business account for $40.
The vast majority of the company's revenue comes from these subscriptions, but until recently, almost all of Anysphere's customers were individual users.
Cursor has quickly become part of the daily routine for programmers at a number of companies, including OpenAI, which is also an existing investor, as well as Spotify Technology SA, Major League Baseball and Instacart. More than a million people use the service every day, the company said.
Anysphere's rapid growth has made it one of the most closely watched startups in the industry. Its software has helped create a new style of programming known as vibe coding, where users simply accept suggestions made by an AI assistant over and over again.
Source: Bloomberg
