Investor interest in AI coding assistants is exploding.
Anysphere, the developer of AI-powered coding assistant Cursor, is in talks with venture capitalists to raise capital at a valuation of nearly $10 billion, Bloomberg reported.
The round, if it transpires, would come about three months after Anysphere completed its previous fundraise of $100 million at a pre-money valuation of $2.5 billion, as technewss was first to report. The new round is expected to be led by returning investor Thrive Capital.
Thrive Capital and Anysphere didn’t immediately respond to a request for comment.
While Anysphere’s previous round valued the company at 25 times its $100 million ARR (per The New York Times), investors seem to be willing to value fast-growing companies at even higher multiples now. Anysphere’s current annualized recurring revenue (ARR) may have already climbed to $150 million, The Information reported, which means the new deal, should it happen would be a whopping 66 times ARR.
Anysphere isn’t the only company receiving such a high valuation from investors.
Codeium, a company behind AI coding editor Windsurf, is raising capital at a valuation of nearly $3 billion, technewss reported last month. Kleiner Perkins, which is leading the round into Codeium, valued the company at about 70 times ARR of about $40 million.
Boston, MA July 15
AI is adapting fastest in coding tools, outpacing its use in sales, law, healthcare, and other sectors, according to investors.
In recent weeks, investors have been approaching Poolside, another AI-powered coding company that is also developing its own LLM, sources tell technewss and The Information. Poolside didn’t immediately respond to a request for comment.