Anysphere Inc., the developer behind the AI-powered code editor Cursor, is in discussions to raise several hundred million dollars, potentially valuing the company at approximately $10 billion. This valuation marks a significant increase from its previous round, which was at 25 times annual recurring revenue (ARR), and if finalized, the new valuation would represent 66 times ARR. Founded in 2022 by graduates from the Massachusetts Institute of Technology (MIT), Cursor has experienced rapid growth in the AI coding sector, attracting attention from investors and industry experts alike. Andreessen Horowitz has noted the company's impressive trajectory, highlighting its success in the competitive AI-native coding market.