Cursor, an AI startup that focuses on coding tools, has secured $2.3 billion in funding, bringing its valuation to $29.3 billion. This marks a significant increase from its last funding round in June. The company, which emerged from the research lab Anysphere in 2022, has developed a coding tool that assists developers in generating, editing, and reviewing code. Since its launch in 2023, Cursor has reported over $1 billion in annualized revenue and expanded its workforce to more than 300 employees. Major investors in this latest round include Accel, Thrive Capital, Andreessen Horowitz, and tech giants like Nvidia and Google. Cursor's CEO, Michael Truell, stated that the company is focused on growth rather than pursuing an IPO at this time. The coding tool market is becoming increasingly competitive, with Cursor up against players like OpenAI and Anthropic. Notably, OpenAI previously considered acquiring Cursor but the talks did not progress. Cursor claims its in-house models produce more code than almost any other large language models available. Jensen Huang, CEO of Nvidia, praised Cursor as his favorite enterprise AI service. The competition in the coding tool sector remains fierce, with Anthropic reporting significant revenue from its coding tool, Claude Code, and Cognition acquiring the startup Windsurf. Cursor's leadership acknowledges both the potential for growth and the challenges ahead as they aim to enhance their product and expand their market presence.