Cursor has reportedly surpassed $2B in annualized revenue

The AI coding assistant Cursor has surpassed $2 billion in annualized revenue, according to a Bloomberg source. This individual says the four-year-old startup saw its revenue run rate double over the past three months.

The disclosure appears 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 — particularly Anthropic’s Claude Code.

Founded in 2022, Cursor initially sold its product primarily to individual developers. Over the last year, however, it has focused more on landing large corporate buyers, which now account for approximately 60% of revenue, according to Bloomberg.

While some individual developers and smaller startups have switched from Cursor to Claude Code, which is seen as more competitively priced, that attrition seems to higher-spending corporate customers who tend to stick around longer.

Beyond Claude Code, OpenAI’s coding tool Codex is also competing for share in the rapidly growing market for AI-assisted software development. Other startups in the 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 our request for comment.