Code-gen startup Cursor valuation nearly triples to $30 billion in latest funding round

(Reuters) -Code-generation startup Cursor nearly tripled its valuation to $29.3 billion in five months after ​raising $2.3 billion in its latest funding round, as ‌artificial intelligence companies continue to attract investor attention.

The Series D funding round was led by ‌new investor Coatue, an investment management firm, and existing investor Accel, Cursor said in a blog post on Thursday. Fresh investors Nvidia and Alphabet’s Google also participated in the round.

AI firms have dominated private ⁠funding markets this year,‌ with global venture funding in the third quarter increasing 38% year-over-year to $97 billion, about ‍half of which went to AI companies, according to data from Crunchbase.

A surge in investor appetite for AI-linked firms also helped drive Wall Street’s ​benchmark indexes to record highs this year.

The San Francisco-based company raised ‌$900 million in June at a $9.9 billion valuation, attracting backing from investors, including Thrive Capital, Andreessen Horowitz and Accel.

The company has crossed $1 billion in annualized revenue, with sales-led revenue increasing 100-fold since the beginning of 2025, Cursor said ⁠in a mailed statement to Reuters.

Cursor, which ​develops tools to autonomously generate and complete ​code, said the latest funding round will be used to invest in its research efforts.

Code-generation startups are attracting sky-‍high valuations as ⁠businesses explore artificial intelligence-based solutions to enhance or replace traditional software development roles.

However, investor concerns that valuations of AI companies may ⁠have outpaced fundamentals intensified after SoftBank Group offloaded its $5.8 billion stake in ‌Nvidia earlier in the week.

(Reporting by Pritam Biswas in ‌Bengaluru; Editing by Vijay Kishore)