Hard Fork AI Cursor Locks In $2.3B With Huge VC Support
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Nov 15, 2025 Cursor has secured a whopping $2.3 billion in funding, more than doubling its valuation to $29.3 billion. Major players like NVIDIA and Google backed this strategic investment. The funds will enhance Cursor's Composer, an in-house AI model designed to boost revenue and independence from competitors like OpenAI. With over 1 million daily users, Cursor's unique 'mixture-of-experts' technology makes coding tasks faster and more efficient, promising a significant edge in developer productivity.
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Rapid Mega-Raise And Valuation Surge
- Cursor raised $2.3 billion five months after a $900M round, signaling massive investor confidence.
- Its new valuation jumped to $29.3 billion, more than doubling the prior valuation.
Strategic Investors Back Cursor
- The round was co-led by existing investor Acel and new lead Coat, with strategic checks from NVIDIA and Google.
- NVIDIA's participation aligns with its interest in growing GPU-driven AI workloads.
Funding Focused On In-House Model
- CEO Michael Truel said the new funding will go toward improving Composer, Cursor's in-house code model.
- Owning the foundational model reduces reliance on third-party LLM vendors and saves revenue leakage.