Cursor reportedly surpassed $2B in annualized revenue

The AI coding assistant Cursor has surpassed $2 billion in annualized revenue, a metric calculated by multiplying the latest month’s revenue by 12, a Bloomberg source said. The four-year-old startup’s revenue run rate doubled over the past three months. The disclosure appears timed to counter a recent wave of skepticism after tweets went viral questioning whether Cursor’s momentum was stalling, citing high-profile defections by individual developers to competing tools, particularly Anthropic’s Claude Code.

Founded in 2022, Cursor initially sold its product primarily to individual developers. Over the last year it shifted focus toward landing large corporate buyers, which now make up roughly 60% of revenue. Some individual developers and smaller startups have moved to Claude Code, which is seen as more competitively priced, while higher-spending corporate customers tend to stick around longer.

OpenAI’s Codex and other startups such as Replit, Cognition and Lovable also compete in the market for AI-assisted software development.

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