Cursor in talks to raise at a $10B valuation as AI coding sector booms

Author

Noel Moldvai
March 13, 2025

TL;DR. AI funding is hitting new highs—Cursor is in talks for a $10B valuation as investors double down on AI-powered coding tools. Meanwhile, CoreWeave has secured an $11.9B deal with OpenAI but faces scrutiny over alleged Microsoft contract issues ahead of its $35B IPO. The AI arms race shows no signs of slowing.

Cursor in talks to raise at a $10B valuation as AI coding sector booms

Investor interest in AI-powered coding assistants is surging, with Anysphere’s Cursor reportedly seeking a $10 billion valuation in new funding. This comes just months after a $100 million raise at a $2.5 billion valuation. Thrive Capital is expected to lead the round, reflecting strong confidence in AI coding tools. Similar firms like Codeium are also receiving high valuations, showing the sector’s rapid growth.

AI firm CoreWeave denies contract cancellations with Microsoft

CoreWeave has refuted reports that Microsoft withdrew from some of its contracts, maintaining that no commitments have been broken. While Microsoft remains a major partner, accounting for 62% of CoreWeave’s revenue, concerns remain about potential disruptions ahead of CoreWeave’s anticipated IPO at a $35 billion valuation. The company continues to expand its AI cloud services amid strong investor interest.

OpenAI to pay CoreWeave $11.9 billion over five years for AI data centers, services

CoreWeave has secured a five-year, $11.9 billion deal with OpenAI, reinforcing its position as a key AI infrastructure provider. OpenAI will also gain a $350 million stake in CoreWeave ahead of its IPO. With revenue soaring over 700% in 2024, CoreWeave continues to expand its data centers and AI computing services, serving major clients like Meta, IBM, and Microsoft.

Anthropic’s annualized revenue reaches $1.4 billion

Anthropic’s revenue has surged to $1.4 billion, marking a 40% increase since late 2024. With a projected revenue range of $2 billion to $4 billion for 2025, the AI company is focusing on advancing its Claude AI models and expanding globally. A recent $3.5 billion Series E round pushed its valuation to $61.5 billion, highlighting strong market confidence.

AI’s next top model rewind

Did you miss our first deep-dive series hosted with Sacra? No need to fear, you can check out the recorded live stream and hear more about what we had to say about the top AI companies in the space.

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Cheerio! Until next week.
-Noel