AI startup Cursor raises $2.3 billion, reaching a valuation of $29.3 billion.

According to a report by Golden Finance and the Wall Street Journal, AI startup Cursor (which helps engineers write code) has raised $2.3 billion in a new round of funding, bringing its valuation to $29.3 billion. Cursor can analyze programmers' actions and suggest the next few lines of code. It also provides a chatbot that users can ask code-related questions. This valuation is astonishing for a startup that was valued at less than $10 billion just a few months ago, highlighting investors' continued and strong interest in all things AI-related. Advances in generative AI have driven up the valuations of a whole generation of coding companies utilizing this technology, such as Replit, Sweden's Lovable, and Cognition. However, they face challenges, like many AI products, related to costs. AI coding companies must pay to build or access AI models to support their applications. Some venture capitalists expect these costs to come down and that customers will accept paying a premium for AI applications that provide more value.