Anysphere, the company behind AI programming assistant Cursor, has closed a massive $900 million funding round led by Thrive Capital, bringing its valuation to $9.9 billion - just shy of unicorn status. The round saw participation from prominent investors including Andreessen Horowitz, Accel, and DST Global.

This marks the company's third funding round in less than twelve months, highlighting explosive growth in the AI coding sector. Last December, the three-year-old startup raised $100 million at a $2.5 billion valuation - meaning its worth has nearly quadrupled in just six months.

Rapid Revenue Growth Insiders report Anysphere's annual recurring revenue (ARR) doubles every two months, with current figures surpassing $500 million. This represents a 60% jump from the $300 million ARR reported in mid-April, demonstrating remarkable commercialization success.

Cursor employs a tiered subscription model: after a two-week free trial, developers can choose between a $20 monthly professional plan or $40 enterprise version. While initial revenue came primarily from individual users, the company has recently expanded into corporate team licenses at premium prices.

Competition Heats Up Earlier this year, OpenAI and other potential acquirers approached Anysphere but were turned down. Shortly after, OpenAI acquired rival AI assistant Windsurf for $3 billion - a move underscoring the fierce competition among tech giants in this space.

AI programming assistants like Cursor represent one of artificial intelligence's most promising commercial applications. These "ambient coders" are transforming software development workflows while attracting massive investor interest.

Key Points

1. Cursor's parent company Anysphere raised $900M at $9.9B valuation
2. Third funding round in under a year shows rapid sector growth
3. Annual recurring revenue exceeds $500M and doubles every two months
4. Company rejected acquisition offers before latest funding round
5. AI coding assistants emerging as major commercial AI application