Anysphere, the maker of AI coding assistant Cursor, has closed an impressive $900 million funding round at a $9.9 billion valuation, led by Thrive Capital with participation from Andreessen Horowitz, Accel, and DST Global. The recent funding round marks the company's third fundraising effort in less than a year. The company's new valuation represents a nearly 300% increase from its $2.5 billion pre-money valuation, calculated when Anysphere raised a $100 million Series B just months ago.

In addition to recently surpassing $500 million in annualized recurring revenue (ARR), Anysphere reached the $100 million ARR milestone in just 14 months, beating previous record-holder Wiz by four months. Because of this, the three-year-old startup is being hailed as the fastest-growing software company ever. Sources indicate Anysphere's ARR has doubled approximately every two months, causing it to jump from $300 million in mid-April to over $500 million today.

Cursor, Anysphere's flagship product, has revolutionized programming through AI-powered code suggestions and an integrated assistant that answers technical queries. Like many other AI-powered coding assistants, Cursor has contributed to the take-off of "vibe coding", the approach to coding in which developers build their projects by repeatedly accepting recommendations from one of these assistants.

While initially focused on individual subscriptions ($20 Pro, $40 business monthly), enterprise sales now represent an important source of revenue as Anysphere continues to build its strategy to increase its enterprise sales. According to Anysphere, its platform serves over one million daily users across companies, including OpenAI, Spotify, Major League Baseball, and Instacart, with more than half of Fortune 500 companies now using the tool.

Anysphere has publicized its plans to invest the funding in R&D, AI model development, GPU infrastructure, and further expand its team, which has already surpassed a hundred employees, a swift increase from its 60-person headcount in April.