AI startup Cursor hits USD29.3b valuation in new funding round: WSJ
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The news: AI coding tool startup, Cursor, hit a USD29.3 billion ($44.68 billion) valuation to reach almost 12 times the valuation it hit in January, the Wall Street Journal reported.
The numbers: The USD2.3 billion funding round was co-led by existing investor Accel and new investors Coatue is the third round by the startup this year, after its latest June round valued the company at USD9.9 billion.
The context: Thrive Capital and DST Global also participated in the round, the WSJ reported, quoting CEO Michael Truell as saying that Alphabet Inc.’s Google and Nvidia among others were invited to the round “to deepen the partnership.”
Google provides artificial-intelligence services and cloud computing to the startup, while Nvidia is an enterprise customer. The Cursor tool, launched in 2023, learns a developer’s coding style to help autocomplete, edit and review lines of code. It allows users to switch between different AI models, like OpenAI, Anthropic and Google.
The company has not spent any money on marketing and has turned down acquisition interest from a series of AI companies, the WSJ said.
The four co-founders are graduates of Massachusetts Institute of Technology who are all still in their mid-20s.
The source: Wall Street Journal
