The surge of investor interest in AI coding assistants is reaching unprecedented levels.
Anysphere, the organization behind the AI-driven coding assistant Cursor, is currently engaging in discussions with venture capital firms to secure funding that could value the company at approximately $10 billion, as reported by Bloomberg.
If this funding round materializes, it would follow closely behind Anysphere’s previous capital raise of $100 million, which was completed at a pre-money valuation of $2.5 billion, as initially reported by TechCrunch. This upcoming fundraising effort is anticipated to be spearheaded by returning backer Thrive Capital.
Neither Thrive Capital nor Anysphere have responded to inquiries for comments at this time.
Anysphere’s earlier funding round priced the company at a significant 25 times its $100 million annual recurring revenue (ARR), according to the New York Times. However, investors appear increasingly willing to assign even loftier valuations to rapidly expanding companies. Anysphere’s current ARR might have surged to $150 million, as reported by The Information, potentially leading to a staggering valuation of 66 times ARR in the event the deal proceeds.
Anysphere isn’t the sole recipient of such elevated valuations in the market.
Codeium, the developer behind the AI coding editor Windsurf, is seeking financing at a valuation nearing $3 billion, according to TechCrunch’s report last month. The company is being valued at roughly 70 times its ARR of approximately $40 million in a funding round led by Kleiner Perkins.
Investors note that AI is advancing most rapidly within coding tools, outpacing its adoption in sectors such as sales, law, and healthcare.
In the past few weeks, potential investors have also shown interest in Poolside, another AI-focused coding company that is in the process of developing its own large language model (LLM), as sources disclosed to TechCrunch and The Information. Poolside has yet to respond to requests for comments.
Compiled by Techarena.au.
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