Cursor has surpassed $2 billion in annual revenue

The AI programming assistant Cursor has surpassed $2 billion in annualized revenue. This figure is calculated by multiplying the revenue from the last month by 12. The four-year-old startup has doubled its current revenue run rate over the past three months.

The publication of these figures appears to be a response to the wave of skepticism that has emerged recently. Last week, tweets expressing doubts about whether Cursor's growth continues went viral on social media, citing the departure of well-known individual developers to competing tools—primarily Claude Code from Anthropic.

Cursor was founded in 2022 and initially sold its product mainly to individual developers. However, over the past year, the focus has shifted toward attracting large corporate clients, who now account for approximately 60% of total revenue.

Although some individual developers and small startups have indeed switched from Cursor to Claude Code, which is considered more cost-effective, this outflow appears to be offset by corporate clients with higher average checks, who tend to stay with the product longer.

In addition to Claude Code, OpenAI's Codex coding tool is also actively competing for market share. Other startups in the AI development assistant segment include Replit, Cognition, and Lovable.

Cursor's latest valuation stood at $29.3 billion—the same level at which the company was valued in November when it raised $2.3 billion in a funding round co-led by Accel and Coatue funds.

Source: bloomberg.com