The artificial intelligence startup Cursor raised $2.3 billion in new funding, bringing the company's valuation to $29.3 billion.

According to a TechFlow message on November 13, as reported by The Wall Street Journal, the artificial intelligence startup Cursor (which helps engineers write code) raised $2.3 billion in a new funding round, 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' ongoing and strong interest in all things AI-related. Advances in generative AI have driven the valuations of a generation of coding companies utilizing the technology, such as Replit, Sweden's Lovable, and Cognition. However, they face challenges, like many AI products, regarding costs. AI coding companies must pay to build or access AI models to support their applications. Some venture capitalists expect these costs to decline and that customers will accept paying a premium for AI applications that provide more value.