Cursor, the fast-growing AI tool for software developers, has closed a new $2.3 billion funding round at a valuation of roughly $29.3 billion, according to investor and regulatory disclosures cited in multiple industry reports.

The raise comes less than five months after its previous round, which valued the company at about $9.9 billion. The investors behind this new round include Accel, Coatue and strategic backers such as Google and Nvidia.

Their participation reflects strong demand for developer-focused AI tools that reduce build and iteration time across large engineering teams.

Cursor’s rapid fundraising pace mirrors the adoption curve it has seen among startups and large tech firms experimenting with automated coding tools for software planning, generation and debugging.

The Push Toward Its Own Foundation Model

Cursor currently supports multiple external models, but the company is shifting its focus toward Composer, its newly introduced in-house model.

Composer is expected to become central to Cursor’s long-term strategy, reducing dependency on third-party model providers and giving the company more control over performance, cost efficiency and customisation.

The new capital will support training cycles, model scaling and infrastructure build-out. Cursor has indicated it wants to create a workflow engine that spans early ideation to full codebase management, not just autocomplete or code suggestions.

Composer’s early demos show intent to compete with large incumbents by offering tighter control over entire development flows.

Why Investors Are Pouring In

Investor appetite for developer-AI platforms remains strong because engineering productivity is viewed as a high-impact business lever. Companies adopting these tools report faster cycles, reduced maintenance burden and more predictable release windows.

Cursor’s traction among enterprise teams has attracted large investors that view developer tooling as a long-term infrastructure market rather than a short-lived AI trend.

This aligns with broader sector momentum. Rivals such as GitHub Copilot, Windsurf, Continue and proprietary tools built inside major tech firms all signal that AI-augmented development is becoming routine across the industry.

Cursor’s valuation jump suggests investors believe the company could become a central layer in enterprise software creation, especially if Composer gains adoption.

What Comes Next

Cursor will face pressure to justify its new valuation. That means demonstrating revenue growth, improving reliability across large codebases and delivering features that differentiate it in a crowded market.

Engineering teams will also watch how Composer handles long-context understanding, multi-file editing, test generation and secure code handling.

Competition will intensify, but Cursor’s speed in shipping updates and its tight integration with modern developer workflows position it as one of the most closely watched companies in the AI-coding space.