TechFlow news, November 13 — According to The Wall Street Journal, AI startup Cursor, which helps engineers write code, has raised $2.3 billion in a new funding round, valuing the company at $29.3 billion.
Cursor can analyze a programmer's actions and suggest the next lines of code. It also offers a chatbot to which users can pose questions related to coding. This valuation is staggering for a startup that was valued at less than $10 billion just months ago, highlighting investors' sustained and strong interest in all things AI-related.
Advances in generative AI have driven up valuations across a generation of companies leveraging this technology for coding, such as Replit, Sweden’s Lovable, and Cognition. However, like many AI products, their challenge lies in costs. AI coding companies must pay to build or access AI models to support their applications.
Some venture capitalists expect these costs to decline and believe customers will be willing to pay a premium for AI applications that deliver greater value.
