Investors are showing significant interest in startups that offer AI-powered coding tools, with Cursor being a prime example. According to a report by the Financial Times, Cursor has secured $900 million in its latest funding round, led by Thrive Capital.

As noted by the Financial Times, prominent venture capital firms such as Andreessen Horowitz (a16z) and Accel are also participating in this funding round, which values Anysphere, the company behind Cursor, at a substantial $9 billion.

It’s worth noting that earlier this year, Cursor raised $105 million in funding from Thrive and a16z, at a valuation of $2.5 billion, as previously reported by TechCrunch.

Moreover, other startups in the AI-powered coding space are also gaining traction with investors. For instance, in February, TechCrunch reported that Windsurf was in talks to raise funding at a valuation of $3 billion. Additionally, last month, there were reports of OpenAI attempting to acquire Windsurf at the same valuation.