AISPhere, the AI startup behind the popular AI-powered code editor Cursor, is debating raising hundreds of millions of people in rounds that could bring hundreds of millions of investors closer to $10 billion. Just a few months ago, the company was valued at $2.5 billion, showing an extraordinary jump to investor trust.
According to those familiar with the debate, hundreds of millions of rounds are expected to bring hundreds of millions of times in the latest round, with prosperous capital leading the claims. The talks are still ongoing and the final conditions may change, but the scale of the negotiations reflects a growing interest in AI-driven developer tools.
“Anysphere Inc. – the startup behind Cursor, a popular artificial intelligence-powered code editor, is in talks to raise hundreds of millions of investors at a valuation of nearly $10 billion,” Bloomberg reported, citing people familiar with the issue.
Cursor: AI code editor rebuilding software development
Founded in 2022 by MIT alumni, Anysphere quickly gained traction among software engineers. Its product, Cursor, becomes an AI-powered coding assistant, focusing on seamless integration with developer workflows. Unlike AI chatbots that simply generate code snippets, cursors actively participate in the coding process and assist developers when they work.
Cursor quickly gained loyal following among Shopify, Openai, and Instacart engineers thanks to its ability to interpret the codebase and provide smart, context-conscious suggestions. Unlike basic AI-powered autocomplete tools, cursors not only generate code, but also actively help developers improve, debug and improve their work in real time.
Developers can explain what they need in plain English, and the cursor converts these requests into function code. If an error appears, the cursor will catch it before it becomes a major problem. If an engineer needs to track a particular function or variable, he can ask the cursor rather than bare through thousands of lines of code. And when you clean up or refactor a project, the cursor can rewrite the entire section without breaking the logic behind it.
By embedding AI directly into the coding process, the cursor is not just an assistant, it is a collaborator. The ability to adapt to real-world development needs has made it a serious rival to tools like Github Copilot and Replit’s Ghostwriter, raising the bar of what AI-driven coding assistants can do.
Anysphere’s Explosive Growth
Few AI startups have grown as fast as Aysphere. In just 12 months, the company surpassed $100 million in annual revenue (ARR).
That funding history reflects this momentum. Anysphere began with a $8 million seed round backed by Openai’s startup fund, followed by a $60 million Series A led by Andreessen Horowitz. The $105 million Series B, led by Thrive Capital and Andreessen Horowitz, has pushed its valuation to $2.6 billion.
Now, there is a new round in the work, so it could be quadrupled. The company’s growth is also reflected in Gaia benchmark tests, which are superior to other AI coding assistants at multiple difficulty levels.
All venture capitalists participate in AI
Anysphere’s latest funding consultations are part of a larger trend in AI investment. Venture capital companies are pouring money into startups that go beyond chatbots and language models, instead focusing on real AI applications such as research tools, automation software, and AI-driven coding assistants.
Investors believe Anysphere could be one of the deciding companies in AI-assisted software development, and they will be putting a big bet on it. The company’s backers already include Andreessen Horowitz, which has raised $175 million in venture capital to date.
It’s unclear how much this round will bring, but with Anysphere’s momentum it’s rarely the last one. If the past year is any indication, then the cursor is becoming more of a dominant force in software development than just an AI coding assistant.
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