AI coding tool lands massive funding amid user surge
Cursor, the AI-native code editor built as a fork of VS Code, raised a $60 million Series A in August 2024 at a $400 million valuation. The tool had grown to over 360,000 monthly active developers, with many reporting they had switched from VS Code or JetBrains.
Cursor, the AI-native code editor developed by Anysphere, raised a $60 million Series A in August 2024 at a $400 million valuation. The round was led by Andreessen Horowitz (a16z), with participation from OpenAI, among others.
What Cursor Is
Cursor is a code editor built as a fork of Visual Studio Code (VS Code), meaning it supports all VS Code extensions but adds deep AI integration throughout the editor. Key features include:
- Composer: Describe a change in natural language and Cursor edits multiple files simultaneously across the codebase
- Chat with codebase: Ask questions about your own code with full repository context
- Tab autocomplete: Predicts multi-line edits based on what the developer is doing, not just the current line
- Model choice: Supports GPT-4o, Claude 3.5 Sonnet, and Gemini models
Adoption
By mid-2024, Cursor had grown to more than 360,000 monthly active developers. Developer forums and social media showed a pattern of engineers abandoning GitHub Copilot in favour of Cursor's more integrated approach. Stripe, Shopify, and several large technology companies reported internal teams adopting Cursor.
Pricing
- Hobby (free): 2,000 completions/month, 50 slow premium requests
- Pro ($20/month): Unlimited completions, 500 fast premium requests/month
- Business ($40/user/month): Centralised billing, usage enforcement
Sources: TechCrunch August 2024, Anysphere blog, a16z announcement
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