Cursor in talks to raise at a $10B valuation as AI coding sector booms

23/05/2025

Cursor in talks to raise at a $10B valuation as AI coding sector booms | TechCrunch

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Cursor in talks to raise at a $10B valuation as AI coding sector booms | TechCrunch

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Cursor in talks to raise at a $10B valuation as AI coding sector booms
======================================================================

[Marina Temkin](https://techcrunch.com/author/marina-temkin/)

4:32 PM PST · March 7, 2025

Investor interest in AI coding assistants is exploding.

Anysphere, the developer of AI-powered coding assistant Cursor, is in talks with venture capitalists to raise capital at a valuation of nearly $10 billion, [Bloomberg reported](https://www.bloomberg.com/news/articles/2025-03-07/ai-startup-anysphere-in-talks-for-close-to-10-billion-valuation).

The round, if it transpires, would come about three months after Anysphere completed its previous fundraise of $100 million at a pre-money[valuation of $2.5 billion](https://techcrunch.com/2024/12/19/in-just-4-months-ai-coding-assistant-cursor-raised-another-100m-at-a-2-5b-valuation-led-by-thrive-sources-say/), as TechCrunch was first to report. The new round is expected to be led by returning investor Thrive Capital.

Thrive Capital and Anysphere didn’t immediately respond to a request for comment.

While Anysphere’s previous round valued the company at 25 times its $100 million ARR (per The [New York Times](https://www.nytimes.com/2025/01/14/business/dealbook/anysphere-cursor-25-billion-valuation.html)), investors seem to be willing to value fast-growing companies at even higher multiples now. Anysphere’s current annualized recurring revenue (ARR)may have already climbed to $150 million,[The Information reported](https://www.theinformation.com/articles/the-math-behind-a-10-billion-valuation-for-cursor?rc=em6blq), which means the new deal, should it happen would be a whopping 66 times ARR.

Anysphere isn’t the only company receiving such a high valuation from investors.

Codeium, a company behind AI coding editor Windsurf, is raising capital at a valuation of nearly $3 billion,[TechCrunch reported](https://techcrunch.com/2025/02/19/ai-coding-startup-codeium-in-talks-to-raise-at-an-almost-3b-valuation-sources-say/) last month. Kleiner Perkins, which is leading the round into Codeium, valued the company at about 70 times ARR of about $40 million.

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AI is adapting fastest in coding tools, outpacing its use in sales, law, healthcare, and other sectors, according to investors.

In recent weeks, investors have been approaching Poolside, another AI-powered coding company that is also developing its own LLM, sources tell TechCrunch and The Information. Poolside didn’t immediately respond to a request for comment.

Topics

[AI](https://techcrunch.com/category/artificial-intelligence/), [AI coding tools](https://techcrunch.com/tag/ai-coding-tools/), [Anysphere](https://techcrunch.com/tag/anysphere/), [Codeium](https://techcrunch.com/tag/codeium/), [cursor](https://techcrunch.com/tag/cursor/), [Fundraising](https://techcrunch.com/category/fundraising/), [Poolside.ai](https://techcrunch.com/tag/poolside/), [Startups](https://techcrunch.com/category/startups/), [Thrive Capital](https://techcrunch.com/tag/thrive-capital/), [Valuations](https://techcrunch.com/tag/valuations/)

![Image 4: Marina Temkin](https://techcrunch.com/wp-content/uploads/2024/03/Marina-Temkin.jpg?w=150)

Marina Temkin

Reporter, Venture

[](https://twitter.com/mtemkin)

Marina Temkin is a venture capital and startups reporter at TechCrunch. Prior to joining TechCrunch, she wrote about VC for PitchBook and Venture Capital Journal. Earlier in her career, Marina was a financial analyst and earned a CFA charterholder designation.

[View Bio](https://techcrunch.com/author/marina-temkin/)

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Cursor in talks to raise at a $10B valuation as AI coding sector booms

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