Cursor has announced a $2.3 billion Series D round that places the AI coding company among the highest-valued startups in the world. With a post-money valuation of $29.3 billion, the San Francisco firm continues a rapid expansion that has reshaped the global conversation about automated programming.
Key Highlights
- Cursor’s new funding round values the company at $29.3 billion.
- The startup reports more than $1 billion in annualized revenue.
- Its AI agents now generate more code than any other automated tool.
- The round brings in major investors including Nvidia, Google, Accel, Andreessen Horowitz, Coatue and Thrive Capital.
- Cursor says the funding will accelerate research toward advanced AI-driven software development.
The raise is Cursor’s third major deal this year, following a $900 million round in June that set its valuation at $9.9 billion. The leap in five months highlights its influence in a market racing toward AI-first development.
Alongside the investment, the company said it has crossed $1 billion in annualized revenue. It also stated that its AI agents now produce more code than any other system, a claim that places it at the centre of a shifting software industry. In its announcement, Cursor described the milestone as evidence of the scale now possible with agentic programming.
Founded in 2022 by four MIT graduates, Cursor was built around the idea that coding should feel like a conversation with a capable collaborator. Its IDE supports project-level refactoring, automated debugging and multi-agent orchestration. The platform is used by more than 50,000 teams, including many in the Fortune 500.
The company’s growth has been driven by products such as Composer 2.0, which deploys several AI agents to build and test code at once. Recent updates include native ties to Chrome DevTools and planning features that allow a single developer to manage work that once required full teams.
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Across social platforms, users have described dramatic gains in speed and lower development costs. Some startups report cutting expenses by replacing junior hires with the company’s professional subscriptions, while agencies say projects that previously took weeks can now be completed in minutes.
The Series D round deepens Cursor’s links with early investors and adds new backing from Nvidia and Google. Their involvement has drawn speculation about future partnerships and whether Cursor’s tools may integrate with larger ecosystems.
Chief executive Michael Truell recently said programming is moving toward high-level instructions that resemble plain English, rather than long blocks of code. He argued that the future of development will depend on systems that interpret these instructions and produce reliable output at scale.
Cursor said the new funding will go toward research and the next generation of its platform. Industry observers believe this may include more advanced forms of autonomous development, where AI systems handle entire application lifecycles.
The announcement comes during a year when AI companies have attracted more than half of global venture funding. With other major players releasing new models and raising record sums, Cursor’s momentum reflects a maturing sector where AI is reshaping the work of software engineering.
For developers, the shift presents new choices. Many welcome the speed and accuracy of automated tools, while others warn of the risks of relying too heavily on AI systems. Despite the debate, Cursor’s revenue, valuation and adoption suggest it remains one of the strongest forces in the transition to AI-driven coding.
