Cursor, an artificial intelligence-powered software development platform, has raised $2.3 billion in a Series D funding round that values the company at $29.3 billion, as investors bet that AI-assisted coding will reshape how software is built.
The round drew continued backing from existing investors Thrive Capital, Andreessen Horowitz, Accel and DST Global, while bringing in new investors including Coatue, Nvidia and Google, Cursor said in a statement.
Proceeds will go toward technical research, product development and training of “frontier” coding models, as well as expanding its go-to-market efforts with large enterprises and Fortune 500 clients.
Cursor said it has topped $1 billion in annualised revenue and now serves “millions” of developers and tens of thousands of teams globally.
The company claims to employ more than 250 engineers, researchers, designers and operations staff split between San Francisco and a newer office in New York.
“We believe that coding will be the single biggest driver of global productivity over the next decade,” co-founder and CEO Michael Truell said, adding that the new capital will allow the company to step up research and product investment.
The platform has evolved from a conventional AI-enhanced code editor into what the company describes as an operating environment for working across an entire codebase, from writing and refactoring to reading and reviewing production-grade software.
Cursor’s Composer model, an “agentic” coding system, is among the products it is pushing to automate more of the routine work done by software engineers.
The size of the round and implied valuation put Cursor among the most richly valued AI developer-tools startups, underscoring investor conviction that coding assistants could become core infrastructure for software teams.
But as big tech firms and rival startups race to embed similar capabilities into existing IDEs and cloud platforms, Cursor will face pressure to prove its tools can deliver sustained productivity gains, not just novelty, for enterprise engineering teams.
