AI Chat: ChatGPT, AI News, Artificial Intelligence, OpenAI, Machine Learning Cursor Raises $2.3B 5 Months After Last Round
8 snips
Nov 15, 2025 Cursor just scored a whopping $2.3 billion funding boost, skyrocketing its valuation to $29.3 billion. Insight reveals heavyweights like NVIDIA and Google backing the round. The company aims to build its own AI model, Composer, to minimize reliance on third-party solutions. With a user base exceeding 1 million and tens of thousands of enterprise clients, Cursor is set to outpace competitors. CEO Michael Truel claims their new model offers coding speeds four times faster, drastically improving developer workflows.
AI Snips
Chapters
Transcript
Episode notes
Explosive Fundraising And Valuation Jump
- Cursor raised $2.3B just five months after a $900M round, signaling extreme investor demand for AI coding tools.
- The new valuation jumped to $29.3B, more than doubling from $9.9B and showing rapid re‑rating of AI developer tooling.
Strategic Backing From NVIDIA And Google
- Strategic investors in the round include NVIDIA and Google, aligning hardware and cloud interests with Cursor's growth.
- NVIDIA's participation reflects its incentive to fund workloads that drive GPU demand.
Owning The Model Reduces Vendor Reliance
- Cursor plans to use the round to develop Composer, its own foundational code model rather than relying on third parties.
- Owning that model reduces dependency and the share of revenue paid to external LLM providers.