Cursor has reportedly surpassed $2B in annualized income

The AI coding assistant Cursor has surpassed $2 billion in annualized income, in keeping with a Bloomberg supply. This particular person says the four-year-old startup noticed its income run fee double over the previous three months.

The disclosure seems timed to counter a latest wave of skepticism. Final week, tweets went viral questioning whether or not Cursor’s momentum was stalling, citing high-profile defections by particular person builders to competing instruments — notably Anthropic’s Claude Code.

Based in 2022, Cursor initially bought its product primarily to particular person builders. During the last 12 months, nevertheless, it has centered extra on touchdown massive company patrons, which now account for about 60% of income, in keeping with Bloomberg.

Whereas some particular person builders and smaller startups have switched from Cursor to Claude Code, which is seen as extra competitively priced, that attrition appears to higher-spending company clients who have a tendency to stay round longer.

Past Claude Code, OpenAI’s coding device Codex can also be competing for share within the quickly rising marketplace for AI-assisted software program improvement. Different startups within the house embrace Replit, Cognition, and Lovable.

Cursor was final valued at $29.3 billion when it raised a $2.3 billion funding spherical co-led by Accel and Coatue in November.

Cursor didn’t instantly reply to our request for remark.