AI coding assistant Cursor secures $2.3 billion in new funding just five months after its last round

Developer-focused AI coding platform Cursor continues to attract major investment as its valuation soars.

On Thursday, the company revealed a $2.3 billion funding round that values Cursor at $29.3 billion, according to the Wall Street Journal. This new figure more than doubles its previous $9.9 billion valuation from a $900 million Series C round in June.

The latest funding was co-led by Accel, an existing backer, and Coatue, a newcomer to the investor lineup. Nvidia—a Cursor enterprise customer—and Google, which supplies AI models to the company, also took part as strategic investors.

Thrive Capital, led by Joshua Kushner, which led Cursor’s last two rounds, also joined this one.

Cursor CEO and co-founder Michael Truell told the Wall Street Journal that the new funds will support development of Composer, the company’s proprietary AI model launched in October.

While Cursor still depends on third-party AI models from Google, OpenAI, and Anthropic to run its coding platform, Composer is expected to take on more of that workload over time.

Looking ahead, 2026 could be pivotal for Cursor. The company continues to post strong growth, but faces intensifying competition as OpenAI and Anthropic refine their own AI coding assistants in a rapidly evolving market for developer tools.