Cursor would have exceeded $2 billion in annualized revenue | TechCrunch

Brief

The AI ​​Cursor coding assistant has exceeded $2 billion in annualized revenue, a measure calculated by multiplying the last month’s revenue by 12, according to a Bloomberg source. This person says the four-year-old startup has seen its revenue rate double in the last three months.

This disclosure seems timely to counter a recent wave of skepticism. Last week, tweets went viral wondering if Cursor’s momentum had stalled, citing high-profile defections of individual developers to competing tools – particularly Anthropic’s Claude Code.

Founded in 2022, Cursor initially sold its product primarily to individual developers. Over the past year, however, the company has focused more on acquiring larger companies, which now account for about 60% of revenue, according to Bloomberg.

Although some individual developers and small startups have past cursor For Claude Code, whose prices are considered more competitive, this attrition seems to concern the highest-spending corporate clients who tend to stay longer.

Beyond Claude Code, OpenAI’s coding tool Codex is also competing for market share in the rapidly growing AI-assisted software development market. Other startups in the sector include Replit, Cognition and Lovable.

The cursor was last evaluated at $29.3 billion when it raised a $2.3 billion funding round co-led by Accel and Coatue in November.

Cursor did not immediately respond to our request for comment.

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