Anysphere, whose Cursor software uses artificial intelligence to help programmers code on the fly, plans to announce on Tuesday that it has raised $10

Anysphere, a Maker of A.I. Coding Software, Raises $105 Million

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2025-01-14 22:00:06

Anysphere, whose Cursor software uses artificial intelligence to help programmers code on the fly, plans to announce on Tuesday that it has raised $105 million at a big jump in valuation.

The new round, which values the nearly three-year-old start-up at $2.5 billion, was led by Thrive Capital, which spearheaded huge recent investments in OpenAI and the data company Databricks, and Andreessen Horowitz, the giant venture capital firm that is another existing backer.

The funding is the latest sign of fierce competition among investors to gain exposure to A.I. start-ups. A.I. deals accounted for more than 35 percent of the $366 billion worth of venture capital deals last year, according to the research firm PitchBook.

A wave of A.I. investments has pushed up valuations of start-ups, with OpenAI worth more than $150 billion and Databricks worth $62 billion. That has generated concern about whether the fervor is inflating a speculative bubble.

In the case of Anysphere, its new valuation is up sixfold from what it fetched in its last fund-raising round — in May. Even so, “we turned down higher offers,” said Michael Truell, the company’s co-founder and chief executive.