Cursor Breaks $2 Billion in Annual Revenue

The AI coding assistant Cursor has exceeded the $2 billion annualized revenue mark, according to Bloomberg. A source familiar with the matter reports that the startup, founded in 2022, has doubled its revenue over the past three months. The publication of these figures comes at a time when doubts about the company’s growth trajectory have surfaced.

Last week, posts went viral on X raising the question of whether Cursor’s momentum is stalling. Users cited prominent developer departures to competing tools as evidence – particularly to Anthropic’s Claude Code. Cursor initially sold its product primarily to individual developers, but has increasingly focused on large enterprise customers over the past year.

Enterprise customers account for 60 percent of revenue

Corporate buyers now make up roughly 60 percent of revenue, according to Bloomberg. While some individual developers and smaller startups have switched to Claude Code – which is considered more price-competitive – this exodus does not appear to affect the more affluent enterprise customers. These tend to remain longer with their chosen tool.

In addition to Claude Code, OpenAI’s Codex is also competing for market share in the rapidly growing segment of AI-powered software development. Other startups in this space include Replit, Cognition, and Lovable. Competition is intensifying while demand for AI programming assistants continues to rise.

Valuation of nearly $30 billion

Cursor was most recently valued at $29.3 billion when the company closed a funding round of $2.3 billion in November 2025. The annualized revenue underscores this high valuation and signals that the business model is currently working despite increasing competition.