This AI Coding Startup Backed By Nvidia, Google Is Now Valued At $29B – Revenue Tops $1B

• AI coding startup Cursor is now valued at $29.3 billion, nearly twelve times what it was in early 2025.
• New investors include Alphabet Inc.’s Google and Nvidia Corp. 
• Cursor unveiled its in-house AI model, ‘Composer,’ in late October. 

Cursor, a rapidly growing startup known for its AI-powered coding assistant, has secured $2.3 billion in new funding, pushing its valuation to an astonishing $29.3 billion.

In a blog post on Thursday, Cursor announced that it has surpassed $1 billion in annual revenue, with the team expanding to more than 300 engineers, researchers, designers, and operators.

According to The Wall Street Journal’s report, the current valuation is nearly twelve times what it was in early 2025. 

Deepening Ties With Tech Giants

The latest round was co-led by venture firm Accel and Coatue, with participation from returning investors Thrive Capital and DST Global. New backers include Alphabet Inc.’s (GOOG, GOOGL) Google and Nvidia Corp. (NVDA). 

Google, through its cloud and AI services, supports Cursor’s growing infrastructure, while Nvidia is a customer. Nvidia CEO Jensen Huang, in an interview with CNBC, said that all of the chip giant’s engineers use the AI coder. 

“Cursor is AI software coder. Is incredibly useful. All of our engineers use it.”

-Jensen Huang, CEO, Nvidia

Cursor develops an AI coding tool that adapts to each developer’s style to help complete, edit, and review code.

Funding To Fuel Growth

The company was founded by four graduates from the Massachusetts Institute of Technology, all of whom were still in their mid-20s. Since its launch in 2023, it has earned a strong following among professional engineers and industry leaders, according to the report.

The platform allows users to switch between leading AI models from OpenAI, Anthropic, and Google, making it a versatile option for engineers. Its simplicity and adaptability have drawn widespread acclaim, though Cursor pays substantial licensing fees to these major AI labs for access to their technology.

However, competition has intensified since OpenAI and Anthropic introduced their own coding assistants. In response, Cursor unveiled its in-house AI model, ‘Composer,’ in late October. 

Cursor said the latest funding will enable the company to invest in its research and develop new tools. 

Also See: Oppenheimer Sees Another Nvidia Earnings Beat, Hikes Price Target Before Q3 Results

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