Cursor in talks to raise at a $10B valuation as AI coding sector booms

Investor interest in AI coding assistants is exploding. Anysphere, the developer of AI-powered coding assistant Cursor, is in talks with venture capitalists to raise capital at a valuation of nearly $10 billion, Bloomberg reported. The round, if it transpires, would come about three months after Anysphere completed its previous fundraise of $100 million at a pre-money valuation of $2.5 billion, as TechCrunch was first to report. The new round is expected to be led by returning investor Thrive Capital. Thrive Capital and Anysphere didn’t immediately respond to a request for comment. While Anysphere’s previous round valued the company at 25 times its $100 million ARR (per The New York Times), investors seem to be willing to value fast-growing companies at even higher multiples now. Anysphere’s current annualized recurring revenue (ARR) may have already climbed to $150 million, The Information reported, which means the new deal, should it happen would be a whopping 66 times ARR. Anys ... Read full article.