AI startup Cursor raises $2.3 billion in funding, reaching a valuation of $29.3 billion

Jinse Finance reported, citing The Wall Street Journal, that artificial intelligence startup Cursor (which helps engineers write code) has raised $2.3 billion in a new round of financing, bringing the company's valuation to $29.3 billion. Cursor can analyze programmers' actions and suggest the next few lines of code. It also offers a chatbot that users can ask code-related questions. For a startup that was valued at less than $10 billion just a few months ago, this valuation is astonishing and highlights investors' continued and strong interest in all things AI-related. Advances in generative AI have driven up the valuations of an entire generation of coding companies leveraging the technology, such as Replit, Sweden's Lovable, and Cognition. However, like many AI products, they face the challenge of costs. AI coding companies must pay to build or access AI models to support their applications. Some venture capitalists expect these costs to decrease and that customers will be willing to pay a premium for AI applications that provide more value.