Coding assistant Cursor raises $2.3B 5 months after its previous round (techcrunch.com)

Cursor announced a $2.3 billion funding round that values the AI coding assistant at $29.3 billion—more than double the $9.9 billion valuation from its $900 million Series C in June. The round was led by Accel and new investor Coatue, with strategic participation from Nvidia and Google (both current partners), and recurring support from Thrive Capital. Cursor says the fresh capital will be used to develop Composer, an in-house AI model it released in October. The raise is significant because it underscores strong investor conviction in developer-facing AI tooling and gives Cursor firepower to reduce reliance on third-party models (Google, OpenAI, Anthropic) that currently power its platform. Technically, Composer is intended to take on some of that inference and feature load, which could improve latency, cost control, and customization for coding workflows. With Nvidia on the cap table as an enterprise customer and Google supplying models, Cursor’s strategy combines model development with ecosystem partnerships. The market impact matters: OpenAI and Anthropic are also intensifying their coding products, so next year will test whether Cursor’s Composer and go-it-alone push can sustain differentiation in a rapidly crowded AI developer tools market.