THE DECODER

Anysphere, the company behind the widely used AI code editor Cursor, has raised $2.3 billion in a Series D round, pushing its valuation to $29.3 billion. That's nearly three times what the company was worth after its last round in June, when it brought in over $900 million. The funding comes on the heels of Cursor 2.0, a major update that leans further into autonomous AI agents and debuts Anysphere's own coding model, moving beyond simply integrating models from OpenAI, Anthropic, and others.

Big-name investors, including Accel and Andreessen Horowitz, returned for this round, with new backers like Nvidia and Google joining in. Cursor reportedly brings in more than $1 billion in annual revenue and now employs over 300 people. Despite its rapid growth, Anysphere says it has no plans to go public. While AI coding tools like Cursor are catching on in the enterprise world, recent studies suggest that gains in productivity are modest and developers remain wary of trusting AI-generated code.