Anysphere’s $900M Funding Fuels AI Coding Revolution at $9.9B Valuation

SAN FRANCISCO, June 6, 2025 - Anysphere, the creator of the AI-powered coding assistant Cursor, has secured a monumental $900 million funding round, valuing the company at $9.9 billion, according to a Bloomberg report. Led by Thrive Capital with participation from Andreessen Horowitz, Accel, and DST Global, this marks Anysphere’s third fundraise in under a year, tripling its valuation from $2.6 billion in December 2024.

With annualized recurring revenue (ARR) surpassing $500 million, doubling roughly every two months, Anysphere is capitalizing on the booming AI coding market. The company’s strategic shift toward enterprise licensing, coupled with its 1 million+ users at tech giants like OpenAI, Stripe, and Spotify, positions it as a leader in transforming software development through artificial intelligence.

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Unprecedented Growth in AI Coding

Founded in 2022 by MIT graduates Michael Truell, Sualeh Asif, Arvid Lunnemark, and Aman Sanger, Anysphere has seen meteoric growth, driven by Cursor’s ability to generate nearly a billion lines of code daily through natural language prompts. The platform, a Visual Studio Code fork, offers autocompletion, debugging, and project-wide automation, earning praise for its “vibe coding” experience, a term coined by AI researcher Andrej Karpathy.

Cursor’s adoption by major tech firms and its $500 million ARR, up 60% from $300 million in April 2025, reflect its dominance in a market projected to grow from $25.9 million in 2024 to $97.9 million by 2030, with a compound annual growth rate of 24.8%. This rapid ascent has drawn comparisons to transformative tech giants like Figma, with investors betting on Cursor’s potential to redefine coding workflows.

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Enterprise Expansion Fuels Revenue Surge

Anysphere’s pivot to enterprise licensing has been a key driver of its revenue growth. By offering tailored AI solutions, consulting services, and scalable infrastructure, the company is meeting the needs of large organizations integrating AI into their development pipelines. Cursor’s enterprise plans, priced at $20 for pro users and $40 for business teams, have attracted 360,000 paying subscribers, with major clients like Shopify and Instacart leveraging its capabilities.

The company’s strategic partnerships and plans for self-hosted inference signal a push toward greater independence from external AI providers like OpenAI, which reportedly attempted to acquire Anysphere earlier this year. With $1.1 billion in total funding, Anysphere is poised to scale its offerings, though it faces competition from rivals like Windsurf, acquired by OpenAI for $3 billion, and GitHub Copilot.

Did You Know?
Anysphere’s Cursor, launched in 2022, was inspired by its founders’ frustration with repetitive coding tasks during late-night hackathons at MIT, leading to a tool that now powers a billion lines of code daily.

Navigating Challenges in a Competitive Landscape

Despite its success, Anysphere faces hurdles in maintaining its edge. A recent incident involving its AI support bot, Sam, misinforming users about subscription limits highlighted risks of AI inaccuracies, prompting co-founder Michael Truell to pledge greater transparency. The company also contends with pricing pressures as competitors like Windsurf integrate with Microsoft’s ecosystem, potentially commoditizing AI coding tools.

Investors remain bullish, with Thrive Capital’s continued backing and interest from firms like Index Ventures and Benchmark signaling confidence in Anysphere’s vision. However, concerns linger about whether Cursor can evolve into a broader platform to justify its $9.9 billion valuation, especially as tech giants like Google and Anthropic develop competing AI models with superior reasoning capabilities.