The hottest company in the current US stock market AI circle: Anysphere - the developer of Cursor

Every now and then, a startup rushes to the center of the Silicon Valley wind, becoming a star of the tech era. Over the past two years, that company has been OpenAI. Now, it seems that position is being taken over by Anysphere—an AI startup operated by four founders under the age of 30.

The AI code editing software Cursor developed by Anysphere has quickly become the core of the latest buzzword in the tech circle, "vibe coding," which describes how Cursor makes programming less tedious and more like a casual conversation, thanks to the software's ability to edit and research code using prompts and natural language.

According to the latest report from tech media The Information, Anysphere achieved an annual recurring revenue of $200 million in just one year, with its valuation skyrocketing from $400 million to $2.5 billion, and is negotiating a new round of financing that could push its valuation to $10 billion.

The Hottest Company in the AI Circle of US Stocks Right Now

Similar to ChatGPT, Cursor allows programmers to work with natural language prompts. For example, a programmer can highlight a piece of code and then ask Cursor to explain what that code does. The reason Cursor has become a favorite among programmers almost overnight is mainly due to its ability to predict the code they want to write or edit, as well as its capability to identify errors and seamlessly integrate with existing workflows—something other tools have struggled to achieve. By building a smoother and more automated coding workspace, Cursor claims to have attracted over 30,000 enterprise customers.

Since Cursor gained popularity, top investors in Silicon Valley have been eager to acquire shares in Anysphere.

Last year, a16z co-founder Andreessen Horowitz provided GPU training resources to Anysphere CEO Michael Truell and his co-founders—this is a special treatment they typically reserve for companies in which they have already invested. When Anysphere launched its Series A financing, the Andreessen Horowitz team met with the founders only twice—once for a formal roadshow and once for a breakfast meeting—before quickly signing a check, which is much faster than the usual timeline for most investors.

Stripe CEO Patrick Collison is also an investor in Anysphere. "The founders of Cursor left a very deep impression on me," Collison said, describing himself as "very optimistic" about the company, "They remind me of the best early teams I've seen."

Reports indicate that as investors scramble to buy in, Anysphere's valuation has soared from $400 million in May of this year to $2.5 billion in November. Now, Truell and his co-founders are discussing further funding with Andreessen Horowitz, Thrive Capital, and other investors, which could further elevate Anysphere's valuation to $10 billion At the same time, Anysphere's annual recurring revenue has exceeded $200 million this month—this figure had not been disclosed previously—considering that Cursor was only launched in January 2023, this number is astonishing. Meanwhile, all of this indicates a remarkable reality: Anysphere is one of the fastest-growing startups in history, a rarity even among other rapidly growing AI startups.

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