The flow of venture capital continues to favor AI startups, with 2024 witnessing a remarkable concentration of investment in this sector. Notably, a third of all global VC dollars found their way into AI, specifically. PitchBook data indicates that AI and machine learning startups captured 35.7% of total VC deal value, translating to $131.5 billion—a 50% surge from the preceding year.
This AI momentum persists into the current year, evidenced by US-based Anysphere, the developer of the AI-powered code editor Cursor, which is reportedly in discussions to secure funding that would elevate its valuation to $10 billion, according to Bloomberg. Existing investor Thrive Capital is expected to spearhead this round. This follows a $100 million funding round late last year, which had valued the company at $2.5 billion.
Anysphere, however, is not alone in attracting substantial funding within the AI-powered coding segment. Codeium, the force behind the Windsurf coding editor, is also reportedly seeking investment that would value it at approximately $3 billion.
The Rise of Anysphere AI-Powered Coding Platforms
Anysphere’s rapid growth is noteworthy. Founded in 2022 by Michael Truell, Sualeh Asif, Arvid Lunnemark, and Aman Sanger, the company has swiftly established itself as a leader in AI-assisted coding solutions. Its flagship product, Cursor, employs advanced AI to provide real-time assistance to programmers, streamlining the coding process and boosting productivity. The platform’s user-friendly interface and comprehensive features have garnered considerable attention among developers.
Cursor distinguishes itself by offering functionalities that cater to both novice and experienced programmers. Its AI capabilities include code suggestions, error detection, and optimization recommendations, thereby reducing the time and effort involved in coding. This tool has become essential for many developers seeking efficiency and accuracy.
European Innovations and Global Expansion
European counterparts have also seen significant funding. For example, Poolside AI, specializing in AI-driven coding solutions, achieved unicorn status in 2024. The company focuses on enhancing developer productivity through advanced AI tools, establishing itself as a key player in the European AI coding landscape. Following a $500 million Series B funding round, the company is now valued at nearly $3 billion.
Codesphere, based in Karlsruhe, Germany, provides a platform that allows developers to program and scale complex applications directly in the cloud. By bridging the gap between development and operations, Codesphere transforms deployment into a developer-centric experience, reducing time-to-market and costs. Last year, the German startup raised $18 million in funding.
Lovable, founded by Swedish entrepreneurs, has rapidly emerged as a prominent player in the AI coding sector. Its platform enables users to create production-ready software without traditional coding, allowing individuals to describe their ideas in natural language and see them translated into fully functional applications. This approach democratizes software development, making it accessible to a wider audience. In February 2025, Lovable secured €14.3 million in a pre-Series A funding round.
Looking ahead, with a valuation target nearing $10 billion, Anysphere is poised for global expansion. The company is likely to expand into international markets, particularly in regions with growing tech ecosystems. By continuing to refine its AI models and integrating emerging technologies, the company can maintain its competitive edge and address evolving challenges in software development.
