TL;DR
- Anysphere raises $900M at a $9.9B valuation, led by Thrive Capital
- Its flagship product, Cursor, surpasses $500 million in ARR, up 60% since April
- Growth fueled by tiered subscriptions and new enterprise licensing
- Company turned down acquisition offers from OpenAI and others
Anysphere, the developer behind AI-powered coding assistant Cursor, has raised a staggering $900 million in fresh funding, bringing its valuation to $9.9 billion. The round was led by Thrive Capital, with continued backing from Andreessen Horowitz, Accel, and DST Global.
The company’s trajectory has stunned the AI world,especially given that Anysphere was last valued at $2.5 billion just eight months ago, according to TechCrunch. Since then, its flagship tool, Cursor, has more than doubled revenue, accelerating from $300 million ARR in April to over $500 million today.
Cursor: The New “Vibe Coder” Leader in AI Dev Tools
Cursor is an AI-native integrated development environment (IDE) tailored for developers. Often referred to as a “vibe coder” in the industry, it helps programmers auto-complete, refactor, and debug code with natural language inputs. The product’s frictionless onboarding,via a two-week free trial,and competitive pricing tiers have helped it become the fastest-growing devtool in its category.
Customers can choose between a $20/month “Pro” plan or a $40/month “Business” tier, both of which offer advanced coding assistance, inline chat, and team collaboration tools. Enterprise licensing has recently become available and is expected to drive the next wave of adoption.
Exponential ARR Growth in Less Than 12 Months
According to Bloomberg, Anysphere’s annual recurring revenue has more than doubled in under two months, moving from $300M ARR in April to $500M+ today. That’s a 60% spike in less than eight weeks,numbers that underscore both product-market fit and an appetite for generative AI in software development.
“ARR has been doubling approximately every two months,” a source familiar with the company told TechCrunch.
This puts Anysphere ahead of most AI unicorns in terms of revenue velocity, particularly when compared to peers in the coding assistance space like Replit, GitHub Copilot, and CodeWhisperer.
Cursor’s Growth Metrics & Financial Snapshot
| Metric | Value |
| Funding Raised (2025) | $900 million |
| Valuation | $9.9 billion |
| Annual Recurring Revenue | $500M+ (as of June 2025) |
| User Pricing | $20/month (Pro), $40/month (Business) |
| Enterprise Tier | Yes (launched Q2 2025) |
| Last Valuation (2024) | $2.5 billion |
| Revenue Growth (April–June) | 60% increase in 2 months |
Product-Led Growth Meets Enterprise Expansion
Initially, Cursor’s traction came from individual developers drawn in by its sleek interface and powerful natural language processing. These solo subscriptions built a steady foundation,but Anysphere has now expanded into enterprise licensing, enabling entire engineering teams to deploy Cursor at scale.
This move is expected to significantly increase average revenue per customer (ARPU), positioning Anysphere as a more strategic partner for tech companies and devops organizations.
The enterprise offering also allows Anysphere to compete more directly with GitHub Copilot for Business and Amazon’s CodeWhisperer Professional, while maintaining its indie-friendly brand identity.
Investor Lineup: A Who’s Who of Venture Capital
The $900 million round is one of the largest AI fundraises of 2025. It was led by Thrive Capital, which also participated in previous rounds. Other investors include Andreessen Horowitz (a16z), Accel, and DST Global, each with deep portfolios in AI and developer tools.
These firms are betting big not just on generative AI,but specifically on tools that embed AI into core workflows, rather than just offering APIs or LLM playgrounds.
As reported by Bloomberg, this is Anysphere’s third raise in less than 12 months, signaling relentless investor demand amid soaring product metrics.
Acquisition Offers Rejected: Anysphere Stays Independent
The company has reportedly received acquisition offers from major tech players, including a serious bid from OpenAI, which was actively exploring vertical AI solutions after its $3B acquisition of Windsurf, another AI coding startup.
However, Anysphere rejected those overtures, choosing to remain independent and pursue growth at full throttle.
The decision reflects the confidence of CEO Benjamin Linsley and co-founder Andy Park, who are now steering the company toward an eventual IPO or larger platform expansion.
Cursor vs. the Competition
With Cursor now past $500 million in ARR, it leads the pack among AI developer tools. Here’s how it compares:
- GitHub Copilot: Backed by Microsoft, but ARR is split across GitHub’s broader ecosystem
- Replit Ghostwriter: Targets early-stage and hobbyist coders; strong engagement, lower enterprise traction
- Amazon CodeWhisperer: Built into AWS, but lacks the standalone brand loyalty Cursor has developed
- Windsurf: Acquired by OpenAI; reportedly around $150M ARR at time of purchase
Cursor’s success lies in being a developer-first product that scales up, not a corporate-first product that trickles down.
AI Tools Are Eating the IDE Market
Anysphere’s growth also reflects a broader trend: AI-first IDEs are starting to replace legacy dev environments. With features like inline chat, autocompletion, context-aware debugging, and natural-language test generation, tools like Cursor are reimagining how engineers write and ship code.
What’s more, these platforms are sticky,once integrated into a developer’s workflow, they become indispensable. This bodes well for Anysphere’s future retention and pricing power.
“Cursor feels less like an assistant and more like a partner,” one software engineer told The Verge.
Conclusion: The Most Valuable Coding Startup of the AI Era?
With over $500 million in ARR, a $9.9 billion valuation, and a clean rejection of acquisition offers, Anysphere has vaulted into the top tier of generative AI companies. Cursor’s trajectory not only makes it a category leader,it also sets the benchmark for what product-led growth looks like in the era of vertical AI.
Whether Anysphere becomes the Figma of developer tools or the Snowflake of AI IDEs, one thing is clear: it’s building the blueprint for AI-native software platforms.
