A recent report indicates that 25% of startups in Y Combinator's current cohort have codebases that are predominantly generated by artificial intelligence. This trend highlights the increasing reliance on AI for software development, with many founders reporting that over 95% of their code is AI-generated. Y Combinator partner Jared Friedman confirmed this statistic, noting that this reliance on AI is not limited to non-technical founders, as the majority of these startup founders possess strong technical skills. Additionally, Anysphere, the company behind the popular coding tool Cursor, is in discussions to raise hundreds of millions of dollars at a valuation nearing $10 billion, up from $2.5 billion in January. Cursor has reportedly achieved over $100 million in annual recurring revenue within the past year, demonstrating the growing market for AI-driven coding solutions.
So how can Cursor / Anysphere be worth $10 Billion at $100m ARR, you might ask? Think of forward multiples If Cursor did say +$50m the past 90 days alone, that might be enough velocity to get them to $500m ARR by mid-2026 So 20x ARR 12 months out High but not that high.… https://t.co/gXqVrLJ25p
Oh look, another AI coding assistant is about to hit the billion-dollar club. Cursor is flirting with a $10B valuation while investors throw money around like it’s confetti. Who needs actual programmers anyway? Check out the details here: https://t.co/WMyuNj4Cu1
Cursor in talks to raise at a $10B valuation as AI coding sector booms: https://t.co/GSuVhGQQGb by TechCrunch #infosec #cybersecurity #technology #news