AI coding tool Cursor reportedly crosses $2B in annualised revenue

AI coding assistant Cursor has surpassed $2 billion in annualised revenue, according to a Bloomberg source. The person said the four-year-old startup managed to double its revenue run rate over the last three months.

The timing of that disclosure appears notable, as it comes amid a recent burst of doubt around the company’s trajectory. Last week, several posts on X questioned whether Cursor’s growth was slowing, citing several prominent developers who had shifted to rival products, especially Anthropic’s Claude Code.

Cursor, founded in 2022, initially built its business largely by selling to individual developers. Over the past year, however, the company has increasingly focused on winning larger enterprise customers, which now account for about 60% of its revenue, according to Bloomberg.

Although some individual developers and smaller startups have moved away from Cursor in favour of Claude Code, which is generally viewed as more competitively priced, this trend appears to have offset higher-spending corporate clients who typically remain customers for longer periods.

Cursor is not only contending with Claude Code. OpenAI’s coding product Codex is also battling for market share in the fast-expanding AI-assisted software development space. Other startups operating in the same category include Replit, Cognition, and Lovable.

Cursor was most recently valued at $29.3 billion after a $2.3 billion funding round in November, co-led by Accel and Coatue.