Particle.news
Download on the App Store

Cursor Raises $2.3 Billion, Valuing AI Coding Startup at $29.3 Billion

Management says the new capital will accelerate Composer to reduce dependence on outside models.

Overview

  • Accel and Coatue led the round, with strategic investors Nvidia and Google joining and returning backer Thrive Capital participating.
  • The valuation more than doubles Cursor’s $9.9 billion mark from its $900 million Series C in June.
  • CEO Michael Truell said the funds will be directed toward advancing Composer, the in-house coding model released in October.
  • Cursor still uses models from Google, OpenAI and Anthropic, with plans for Composer to take on part of that workload over time.
  • The raise comes as competition intensifies in AI coding tools, with OpenAI and Anthropic enhancing their offerings.