Anysphere, the company behind the widely-used Cursor application, has reportedly completed a significant funding round, amassing $900 million and resulting in a valuation of $9 billion. This development highlights the growing investor interest in AI-driven technologies.

The funding round, detailed first by The Financial Times, was spearheaded by Thrive Capital, with notable participation from renowned firms such as Andreessen Horowitz and Accel.

Recent Growth and Investment History

This latest funding follows a precedent set in December when Anysphere raised $105 million in a Series B led by Thrive Capital, valuing the company at $2.6 billion. This previous investment came just four months after a $60 million Series A funding round.

Since its inception in 2022, Anysphere has successfully raised a total of $1.1 billion, as reported by Crunchbase.

AI-Powered Coding Trends

The surge in interest around AI-enhanced coding solutions reflects their growing adoption in large enterprises, primarily aimed at optimizing developers’ productivity. This newfound enthusiasm has also driven increased merger and acquisition activity in the sector.

For instance, last month, reports indicated that OpenAI is in negotiations to acquire the AI coding enhancement tool Windsurf, previously known as Codeium, for $3 billion. This potential transaction would mark OpenAI’s largest acquisition to date, according to Crunchbase.

Additionally, it has come to light that OpenAI had previously expressed interest in acquiring Anysphere before shifting its focus to Windsurf.

Venture Capital Landscape

Investment in artificial intelligence remains robust, with AI being the leading sector for venture capital funding in the first quarter of the year. A staggering $59.6 billion was injected into AI ventures, marking the sector’s strongest quarterly performance to date, with AI representations accounting for 53% of all global investment capital.