Developer of vibe code editor Cursor is rapidly rising in value

Anysphere Inc, a start-up behind AI-powered code editing tool Cursor, is rapidly ratcheting equity value.

That's according to a report which claimed private investors wanted to buy in at a price that would pitch the valuation between $18 billion and $20 billion.

If such an investment were to proceed, it would mark a rapid uptick in the software company's book value, given its most recent funding round was only weeks ago.

Anysphere closed a $900 million Series C funding in early June, with the round backed by Thrive Capital, Andreessen Horowitz, Accel and DST Global. This raise took the company's worth to $9.9 billion.

The media report by Bloomberg, citing a source familiar with the matter, says Anysphere did not initiate the latest investment talk. Instead, several investors privately floated the interest, the report claimed.

Bloomberg cites quotes attributed to Anysphere CEO Michael Truell, stating the company hasn't engaged with the potential investors and management is "not focused on fundraising".

Instead, Truell says the team has "lots to do on building the technology, product, and team."

Anysphere this year saw its annualised revenue surpass $500 million, driven by a growing cohort of AI-assisted coders, including clients at OpenAI and Spotify.

Besides the techies working for Silicon Valley firms, also, Cursor is popular among more casual programmers, so-called 'vibe coders' who rely on the AI to write, touch-up and/or debug their work.

Cursor competes with GitHub Copilot, Amazon CodeWhisperer, and Windsurf (which agreed to be bought by OpenAI last month for $3 billion).