AI coding assistant Cursor has generated more than $2 billion in annual revenue, according to Bloomberg sources. This revenue is calculated by multiplying the most recent month’s revenue by 12. The four-year-old startup’s revenue run rate has doubled in the past three months, the person said.
The disclosure appears to have been timed to counter a recent wave of skepticism. Last week, tweets went viral questioning whether Cursor’s momentum was stalling, citing high-profile defections by individual developers to competing tools, most notably Anthropic’s Claude Code.
Founded in 2022, Cursor initially sold products primarily to individual developers. But last year it focused on acquiring large corporate buyers, which now account for about 60% of its sales, according to Bloomberg.
While some individual developers and small startups are switching from Cursor to the more competitively priced Claude Code, the number of high-spending corporate customers who tend to stay longer appears to be declining.
Besides Claude Code, OpenAI’s coding tool Codex is also competing for a share in the rapidly growing market for AI-assisted software development. Other startups in this space include Replit, Cognition, and Lovable.
Cursor was last valued at $29.3 billion when it raised a $2.3 billion funding round co-led by Accel and Coatue in November.
Cursor did not immediately respond to a request for comment.
tech crunch event
San Francisco, California
|
October 13-15, 2026
