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The cofounders of popular AI coding tool Cursor are now billionaires after the company announced it has raised $2.3 billion in a new round of fundraising, valuing their startup Anysphere at $29.3 billion. Forbes estimates that founders Michael Truell, Aman Sanger, Sualeh Asif and Arvid Lunnemark each hold a 4.5% share in the company worth at least $1.3 billion.

AI code editing software Cursor, which is Anysphere’s only product, is used by millions of software developers including those on some 50,000 teams at enterprises like Nvidia, Adobe, Uber, Shopify and PayPal. The company has an annual revenue of over $1 billion.

The startup was founded in 2022 by four friends who met at MIT. All four founders are under 30 years old and have been listed in Forbes 30 Under 30. Since its founding, the startup has raised a total of $3.38 billion from famous VC firms like Accel, Thrive Capital, Coatue, Andreessen Horowitz and DST Global. Earlier this year, Anysphere became one of the fastest growing startups after its annual recurring revenue grew from $1 million in 2023 to $100 million in about 12 months.

AI coding tool Cursor allows engineers to use AI models from OpenAI, Anthropic, Google and xAI to write and edit large parts of code as well as find and fix mistakes in code (called “bugs”). In October, Cursor also launched its own model called Composer that was trained to generate code faster and automatically carry out tasks like editing files and codebases. Using its own model may help the company reduce its dependence on other companies that develop the basic third-party models, which are very expensive.

The Cursor cofounders initially started by building AI models for computer-aided design programs used by mechanical engineers, a project that failed because of their lack of expertise in the field. So they decided to pivot to something they knew better—software engineering. They went on to build their AI-powered code editor, or a “Google docs for programmers,” Truell told Forbes last year.
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