Cursor in negotiations to secure funding with a valuation of $10 billion due to the rise of the artificial intelligence coding sector.

Investor interest in AI-based coding assistants is on the rise. Anysphere, the company developing the AI-powered coding assistant known as Cursor, is in negotiations with venture capitalists to secure funding with a valuation close to $10 billion. This new round of funding is being discussed approximately three months after Anysphere completed a previous fundraising of $100 million at a pre-money valuation of $2.5 billion.

This investment round is expected to be led by Thrive Capital, an investor that has previously partnered with the company. So far, neither Thrive Capital nor Anysphere has responded to requests for comment on the matter. The previous round valued Anysphere at 25 times its annual recurring revenue (ARR) of $100 million, and investors seem willing to offer even higher multiples for fast-growing companies. Reports suggest that Anysphere's annual recurring revenue may have reached $150 million, which would imply that the new deal, if finalized, would be valued at 66 times its ARR.

Not only is Anysphere attracting these high valuations; Codeium, the creator of the AI coding editor Windsurf, is also in the process of raising capital, reaching a valuation close to $3 billion, according to previous information. Kleiner Perkins, which is leading this new investment round, has valued Codeium at approximately 70 times its ARR of $40 million.

Investors are noticing that artificial intelligence is developing more rapidly in coding tools, surpassing its application in sectors such as sales, law, and healthcare. In recent weeks, they have also approached Poolside, another AI-powered coding company that is working on its own language model. So far, Poolside has not issued comments on these negotiations.