In just 4 months, AI coding assistant Cursor has raised another $100 million in a $2.5 billion valuation led by Thrive, sources say

Anysphere, the developer of AI-powered coding assistant Cursor, has raised a $100 million Series B at a $2.6 billion valuation, according to sources familiar with the deal. The round is led by return investor Thrive Capital, the person said.

This new funding comes just four months after Anysphere raised money $60 million Series A Thrive and Andreessen Horrowitz at a $400 million valuation. A16Z also participated in the last round, but this time did not share the lead.

Thrive declined comment, and the company and a16z did not respond to our request for comment.

Last month, TechCrunch reported investors including Index Ventures and Benchmark they fall to themselves for a chance to support the company. But it seems that Anysphere is growing so fast that the existing VC can’t pass up the opportunity to double up on the bet, even if it jumps by a staggering 6.5x in valuation in a round that ended just a few months ago. Interest in backing the company and who would win the deal was widely watched by Valley insiders and marked With an X account called Arfur Rock.

The market for AI-powered coding assistants is filled with options like Augment, Codeium, Magic, and Poolside, as this is one area where AI has found a solid, profitable lane. None of these tools are as popular with developers as Cursor, although they also follow Microsoft’s GitHub Copilot. upped the ante by launching its free version.

However, Anysphere’s revenue grew from $4 million in annual recurring revenue (ARR) in April to $4 million per month in October, sources previously told TechCrunch. That means the company’s October ARR was $48 million, meaning the latest round valued Anysphere at 50 times its revenue. (If the company’s rapid revenue growth continues, the recent deal’s valuation was likely slightly lower.)

Cursor offers developers a free model with tiered pricing. After a two-week free trial, the company charges users either $20 a month or $40 a month for a business subscription designed for larger teams and organizations. Companies using the cursor includes OpenAI, Midjourney, Perplexity, Replicate, Shopify and Instacart.

Anysphere was founded in 2022 by Michael Truell, Sualeh Asif, Arvid Lunnemark and Aman Sanger while they were students at MIT. Last year passed OpenAI acceleratorand raised seed funding led by the OpenAI Startup Fund.

Other investors in the company include a venture capital firm NeoStripe co-founder Patrick Collison, ex-GitHub CEO Nat Friedman and Dropbox co-founder Arash Firdovsi.