(Bloomberg) — Anysphere Inc., the developer of the popular artificial intelligence code editor Cursor, has had talks with investors about a deal that would double its valuation in a new funding round, according to a person familiar with the matter.
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Investors have approached the company in recent weeks about a funding deal that would value the startup at $18 billion to $20 billion, said the person, who asked not to be identified because the information is private. The talks arrive shortly after the startup, which launched in 2023, surpassed $500 million in annualized revenue.
The company didn’t initiate the conversations, the person said, and may decide not to raise money at this time.
The company declined to comment on the talks. “We’re not focused on fundraising and have lots to do on building the technology, product and team,” Chief Executive Officer Michael Truell said in a message to Bloomberg.
While the startup isn’t in need of cash, given the favorable terms, it could choose to add more capital to its balance sheet. Earlier this month, Anysphere said it raised $900 million at a valuation of $9.9 billion, including the new investment, in a round led by Thrive Capital. Andreessen Horowitz, Accel and DST Global also participated.
Following that deal, Silicon Valley investors are eager to put more capital into what they say is the fastest-growing startup of all time in terms of revenue. The company’s annualized sales have exploded in recent months as Cursor has added more enterprise users. Companies like OpenAI, Spotify Technology SA, Major League Baseball and Instacart are all users of Cursor, which analyzes a programmer’s actions and suggests lines of code.
The tools make it easier for people without technical expertise to create computer programs, a trend sometimes called vibe coding, as well as making regular software developers more efficient.
Earlier this month, Truell told Bloomberg that more than half of Fortune 500 companies use Cursor, and more than 1 million people use the service every day.
Still, the startup faces fierce competition, including from GitHub Copilot and Amazon CodeWhisperer. One of its biggest competitors, Windsurf, has agreed to sell to OpenAI for $3 billion, Bloomberg reported, although the deal has yet to be finalized.