Anysphere, the startup developing the AI code editor Cursor, is raising a new funding round from A16z at a valuation of at least $400 million, Business Insider reports.
The latest round’s valuation is a significant increase from the company’s previous funding.
Founded in 2022, Anysphere raised $8 million in its previous seed funding at a valuation of $56.5 million, according to PitchBook data. The July 2023 deal was led by OpenAI Startup Fund, with participation from Sequoia Capital, BoxGroup, former GitHub CEO Nat Friedman and Dropbox co-founder Arash Ferdowsi.
The company has raised $11 million in total to date, but it’s unclear how much the company raised in the 2024 round. Details of this latest round have not yet been finalized and the amount is subject to change. Anysphere declined to comment. A16z did not respond to a request for comment.
According to TechCrunch, the startup’s co-founder Michael Truell partnered with MIT classmates Sualeh Asif, Arvid Lunnemark, and Aman Sanger to develop Anysphere. Anysphere’s website describes the company as “an applied research lab building highly productive human-AI systems.” Cursor, an AI-first code editor, is Anysphere’s first product.
Cursor aims to make engineers more efficient: it is an AI-powered integrated development environment that auto-completes code, writes code in plain English, and answers questions about your codebase.
According to Cursor’s website, the company makes money through a freemium model, charging up to $40 per user per month for premium features. Engineers at companies like Midjourney, Perplexity, Shopify, and OpenAI are already using Cursor.
Anysphere is one of many tools in the AI pair programming category. GitHub CoPilot, widely used for code completion, has added features such as Copilot Chat, which allows engineers to chat in natural language, and CoPilot Workspace, a Copilot-native development environment.
AI-powered development platform Replit AI has raised more than $227 million, and code intelligence startup Sourcegraph has raised more than $223 million, according to PitchBook data. Other coding assistant startups include CodiumAI, Continue, and Tabnine.
