The AI coding assistant Cursor has exceeded $2 billion in annualized revenue, based on multiplying the most recent month’s revenue by 12, as reported by a Bloomberg source. This source notes that the four-year-old company’s revenue run rate has doubled in the past three months.
The announcement seems strategically timed to address recent skepticism. Last week, a viral tweet questioned if Cursor’s momentum was slowing due to prominent developers leaving for competing tools, notably Anthropic’s Claude Code.
Founded in 2022, Cursor initially catered to individual developers but has recently shifted its focus toward large corporate clients, who now represent roughly 60% of its revenue, per Bloomberg.
While some individual developers and smaller startups have moved from Cursor to Claude Code, perceived as more cost-effective, this attrition seems to be offset by the stability of higher-spending corporate customers.
Apart from Claude Code, OpenAI’s Codex is also vying for dominance in the burgeoning AI-assisted software development market. Other competitors include Replit, Cognition, and Lovable.
Cursor’s last valuation was $29.3 billion following a $2.3 billion funding round in November, co-led by Accel and Coatue.
Cursor did not immediately reply to our request for comment.