Cursor reached a $29.3 billion valuation and crossed $1 billion in annualized revenue within roughly three years of launch, according to Anysphere. The AI code editor now counts 64% of the Fortune 500 among its users, according to Cursor, and its revenue has doubled approximately every two months since early 2025. The figures below track Cursor’s revenue ladder, valuation by funding round, enterprise adoption, developer base, and pricing through mid-2026.
Key Takeaways
- Cursor crossed $1 billion in annualized revenue by November 2025 with a team of just over 300 people.
- Anysphere’s valuation climbed from $2.5 billion in December 2024 to $29.3 billion in November 2025, a roughly 12x jump in under a year.
- Enterprise licenses drive the growth: 64% of the Fortune 500 now build with Cursor.
- Annualized revenue doubled roughly every two months, moving from $300 million in April 2025 to $2 billion by February 2026.
- Cursor’s paid tiers start at $20 for Pro and $40 per month for Business.
- SpaceX agreed to acquire Cursor for $60 billion in June 2026, pending completion.
Editor’s Choice
- Anysphere closed a $29.3 billion post-money valuation in its Series D round in November 2025.
- Cursor’s annualized revenue reached $3 billion by May 2026.
- More than 50,000 enterprises build software with Cursor.
- Developers write over 100 million lines of enterprise code per day in Cursor.
- The Series D round raised $2.3 billion in fresh capital.
- The earlier Series C raised $900 million at a $9.9 billion valuation.
Cursor Revenue and ARR Growth
Cursor’s annualized revenue has followed one of the steepest curves in software history. According to TechCrunch, Anysphere surpassed $500 million in annualized recurring revenue, a 60% increase from the $300 million it had reached in mid-April by June 2025. According to Anysphere, the company later crossed $1 billion in annualized revenue by its Series D in November 2025, and, according to Bloomberg, that climb continued through early 2026.
- Cursor’s revenue doubled approximately every two months through the first half of 2025.
- Anysphere surpassed $500 million in annualized recurring revenue by June 2025.
- The company reached $2 billion in annualized revenue, calculated by projecting its most recent monthly sales over a year in February 2026.
- Cursor surpassed $3 billion in annual recurring revenue by May 2026.
- Anysphere forecasts ending 2026 with an annualized revenue run rate of more than $6 billion.
- Only about 300 employees supported that revenue base as of 2025, a revenue-per-head ratio well above traditional SaaS benchmarks.
| Milestone | Annualized revenue | Date |
|---|---|---|
| Mid-stage | $300 million | April 2025 |
| Series C window | $500 million+ | June 2025 |
| Series D | $1 billion | November 2025 |
| Three-year mark | $2 billion | February 2026 |
| Latest reported | $3 billion | May 2026 |
Source: Cursor company blog, TechCrunch, Bloomberg reporting 2025-2026
By the numbers: According to Bloomberg, Cursor’s annualized revenue doubled roughly every two months, carrying it from $300 million in April to more than $500 million by June 2025. That doubling cadence, sustained into 2026, is what set Cursor apart from every prior SaaS growth curve.
Cursor Valuation by Funding Round
Cursor’s valuation rose faster than almost any private software company on record, according to TechCrunch. Anysphere raised its earlier $100 million at a pre-money valuation of $2.5 billion in late 2024, then reached a $9.9 billion valuation in June 2025. The Series D set a $29.3 billion post-money valuation in November 2025.
- Anysphere carried a pre-money valuation of $2.5 billion in December 2024.
- The June 2025 round lifted the valuation to $9.9 billion.
- The November 2025 Series D reached $29.3 billion post-money.
- By April 2026, Cursor was in talks to raise at least $2 billion at a $50 billion valuation, a figure that would nearly double the prior round.
- SpaceX later agreed to buy Cursor for $60 billion in June 2026.
The valuation multiple tells its own story. At roughly $2.5 billion on early revenue, the market paid one of its richest premiums; by the $29.3 billion round, the multiple against a $1 billion revenue base had compressed even as the dollar valuation climbed more than tenfold. The pattern reads less like froth and more like a market repricing Cursor from a bet into a franchise.
Recent Developments
- In June 2026, SpaceX agreed to buy Cursor for $60 billion, one of the largest acquisitions ever for a four-year-old company.
- Wikipedia records that SpaceX announced on June 16, 2026, that it would place Cursor under its xAI subsidiary, pending completion.
- In April 2026, Cursor was in talks to raise at least $2 billion at a $50 billion valuation, with Thrive and Andreessen Horowitz expected to lead.
- Cursor reached $2 billion in annualized revenue in February 2026.
- Anysphere surpassed $3 billion in annual recurring revenue by May 2026.
- Fortune reported in June 2026 that Cursor’s product generates roughly 150 million lines of enterprise code per day and is used by 67% of Fortune 500 companies.
Cursor Funding Rounds and Investors
Cursor raised capital at a pace that matched its revenue. Anysphere’s June 2025 round of $900 million was its third fundraise in less than a year, led by returning investor Thrive Capital. The Series D raised $2.3 billion five months later.
- The late-2024 round raised $100 million at a $2.5 billion pre-money valuation.
- The June 2025 Series C raised $900 million, led by Thrive Capital with Andreessen Horowitz, Accel, and DST Global.
- The November 2025 Series D raised $2.3 billion from existing investors Accel, Thrive, and Andreessen Horowitz, plus new partners Coatue, NVIDIA, and Google.
- The June 2025 round was Anysphere’s third fundraise in less than a year.
- Strategic investor Nvidia was also expected to back the reported $50 billion round in April 2026.
The investor list overlaps heavily with the AI hardware and model layer, a signal worth watching alongside broader AI agent adoption data. NVIDIA and Google joined the Series D as Cursor moved deeper into training its own models.
Cursor Enterprise and Fortune 500 Adoption
Enterprise adoption is the clearest driver of Cursor’s revenue. Cursor’s own enterprise page states that 64% of Fortune 500 companies use Cursor and that more than 50,000 enterprises build with it. Fortune’s later reporting put the Fortune 500 figure higher.
- Cursor reports 64% of Fortune 500 companies use the product.
- More than 50,000 enterprises build with Cursor.
- Developers write over 100 million lines of enterprise code per day in Cursor.
- 93% of engineers select Cursor as their preferred AI coding tool in head-to-head evaluations.
- Named enterprise customers include Salesforce, PayPal, Stripe, NVIDIA, Coinbase, Fox, Rippling, Sentry, and JetBrains.
- Fortune reported that 67% of Fortune 500 companies are using Cursor and that roughly 150 million lines of code per day by mid-2026.
The two adoption figures differ by source and date: Cursor’s enterprise page cites 64% while Fortune cited 67% in June 2026. Both point the same direction, and the enterprise shift maps onto the wider pattern in enterprise AI coding security data that SQ Magazine tracks.
Cursor Developer and User Base
Cursor’s user base spans individual developers and large engineering teams. Anysphere says it counts millions of developers among its customers, and its in-house models now generate more code than almost any other large language model in the world.
- Anysphere counts millions of developers as customers.
- The company describes its knowledge base as architected for complex codebases built by thousands of developers.
- Cursor’s in-house models generate more code than almost any other large language model, per the company.
- The Series D team stood at over 300 engineers, researchers, designers, and operators.
The developer momentum echoes the broader AI job impact statistics shift, where code-generation tools are reshaping engineering workflows rather than eliminating them outright.
Cursor Pricing and Subscription Tiers
Cursor’s pricing is straightforward and helps explain its early consumer-led revenue. After a two-week free trial, the company converts users into paying customers on one of two paid tiers. Individuals pay $20 for Pro, and teams pay $40 per month for the Business subscription.
- Cursor offers a two-week free trial before conversion.
- The Pro tier costs $20.
- The Business tier costs $40 per month.
| Tier | Price | Audience |
|---|---|---|
| Free trial | $0 for two weeks | New users |
| Pro | $20 | Individual developers |
| Business | $40 per month | Teams and enterprises |
Source: TechCrunch 2025
How Cursor Compares in the AI Coding Market
Cursor leads a crowded category, but competition is intensifying. TechCrunch notes Cursor faces fierce competition from Anthropic’s Claude Code and OpenAI’s revamped Codex, even as its revenue keeps climbing. Like many AI coding startups, Cursor has relied on third-party models and operated at negative gross margins.
- Cursor competes with Anthropic’s Claude Code and OpenAI’s Codex.
- The company operated at negative gross margins, a trait shared with model-reliant AI coding startups.
- Cursor’s answer has been its own in-house models, which now generate more code than almost any other large language model.
For a deeper look at how the underlying models stack up, SQ Magazine maintains a Claude and ChatGPT benchmark comparison that tracks the model layer Cursor and its rivals depend on.
Cursor Company and Team Facts
Cursor is the flagship product of Anysphere, Inc. The company was co-founded in 2022 by Michael Truell, Sualeh Asif, Arvid Lunnemark, and Aman Sanger while they were students at MIT. It is headquartered in San Francisco.
Who founded Cursor?
Michael Truell, Sualeh Asif, Arvid Lunnemark, and Aman Sanger co-founded Cursor in 2022 while students at MIT. Truell is CEO and Asif is chief product officer. The company operates as Anysphere, Inc., doing business as Cursor.
Who owns Cursor?
Anysphere owns Cursor today, but ownership is set to change. SpaceX announced on June 16, 2026, that it will acquire Cursor and place it under its xAI subsidiary, pending completion. Until that deal closes, Cursor’s investors include Thrive, Accel, Andreessen Horowitz, Coatue, NVIDIA, and Google.
- Anysphere was founded in 2022 at MIT.
- The company is based in San Francisco.
- Michael Truell is CEO and Sualeh Asif is chief product officer.
- The team reached over 300 people by November 2025.
Is Cursor AI profitable?
Cursor is not confirmed profitable. TechCrunch reported that Cursor, like many AI coding startups reliant on third-party models, operated at negative gross margins. The company’s answer has been to build its own models to reduce its dependence on outside providers, and its in-house models now generate more code than almost any other large language model. Revenue growth has far outpaced the market’s usual expectations, but Anysphere has not published profit figures, and its heavy spending on research and model training continues.
Why it matters: Anysphere forecasts more than $6 billion in annualized revenue by the end of 2026. That pace is extraordinary, yet with the company still on negative gross margins, durable profit hinges on whether its in-house models cut inference costs faster than usage climbs.
Conclusion
Cursor turned an AI code editor into a $29.3 billion company in roughly three years, crossing $1 billion in annualized revenue with a team of only about 300 people. The data points to enterprise adoption as the engine: 64% of the Fortune 500 now build with the product, and revenue has doubled roughly every two months.
The open question for the current year is whether Cursor’s own models can turn category leadership into durable margins as Anthropic and OpenAI press harder on the AI coding market, and whether the pending SpaceX deal reshapes the product’s roadmap.
