Investor Interest in AI Coding Assistants Surges as Anysphere Seeks $10 Billion Valuation
Investor interest in AI-powered coding assistants is skyrocketing, with Anysphere, the company behind the AI coding assistant Cursor, in talks to raise capital at a valuation approaching $10 billion, according to Bloomberg. This round of funding, if completed, comes just three months after Anysphere's previous raise of $100 million at a pre-money valuation of $2.5 billion, as first reported by TechCrunch. The new funding round is expected to be led by returning investor Thrive Capital.
Neither Anysphere nor Thrive Capital responded immediately to requests for comment.
Anysphere's previous funding round valued the company at 25 times its $100 million annual recurring revenue (ARR), as reported by The New York Times. However, investors now appear to be willing to value rapidly growing companies at even higher multiples. Anysphere's current ARR may have reached $150 million, according to The Information, meaning that, if this new deal materializes, it could be valued at a staggering 66 times its ARR.
Anysphere is not the only company attracting high valuations from investors. Codeium, the company behind the AI coding editor Windsurf, is raising funds at a nearly $3 billion valuation, TechCrunch reported last month. Kleiner Perkins, which is leading the round into Codeium, has valued the company at about 70 times its ARR of approximately $40 million.
Investors are increasingly focused on AI’s rapid adaptation in coding tools, which are advancing faster than AI's application in sales, law, healthcare, and other sectors.
In recent weeks, investors have also been approaching Poolside, another AI-powered coding company that is developing its own large language model (LLM), sources told TechCrunch and The Information. Poolside did not immediately respond to a request for comment.
#AI
#AI coding tools
#Anysphere
#Codeium
#cursor
#Fundraising
#Poolside.ai
#Startups
#Thrive Capital
#Valuations
