I-powered coding is proving to be one of the most lucrative use cases for the tech. And Cursor is raking it in.

On Thursday, the company announced a $2.3 billion funding round, boosting its valuation to $29.3 billion, up from $2.5 billion in January. The round was led by Accel, with new investors including Google and Nvidia joining in, signalling that tech giants see no signs that AI coding tools are going anywhere. 

Cursor has bloomed over the past year as companies began automating the work of young coders. The startup’s platform has drawn more than one million users, and counts tech heavyweights like OpenAI, Stripe and Adobe as customers. According to the Wall Street Journal, it’s turned down multiple acquisition offers from major companies. The company also said it has surpassed $1 billion in revenue.

The platform allows users to toggle in between different AI models as they code, including those by Anthropic and OpenAI, and includes an autoselect feature that picks the right model for the job.

• However, it may be seeking to bring AI in-house: In late October, the company launched Composer, its own in-house coding model, built for low-latency agentic coding and capable of completing most tasks in 30 seconds or less.
• In a post on X earlier this week, the company published its popular and fastest-growing models on its platform as of November. Claude Sonnet 4.5 topped the list for popularity, with Composer coming in second and GPT-5 in third.

The company’s investors told the Wall Street Journal that the company’s main objective is to add more users, and CEO Michael Truell said that AI model companies remain “important partners to us.”

But in boosting usage of its proprietary AI model, the company may be able to actually keep some of its revenue, rather than forking it over to major model providers like Anthropic, OpenAI and Google.