Anysphere, which sells the popular AI coding assistant Cursor, confirmed that it raised a $900 million round at a staggering $9.9 billion valuation.

The round — first reported by Bloomberg last week  — was led by Thrive Capital and included investment from Andreessen Horowitz, Accel and DST Global. Rumors of the deal had swirled last month.

Bloomberg dubbed Anysphere as “the fastest growing startup ever.” Indeed, the 3-year-old San Francisco-based startup has crossed $500 million in annual recurring revenue, according to that publication’s sources. That’s up significantly from the $300 million reported in mid-April.

Notably, investors can’t stop writing checks to Anysphere, with the company raising three funding rounds in less than one year’s time. It was last December when Anysphere announced a $105 million Series B led by Thrive Capital that valued the company at $2.6 billion. That was just four months after raising a $60 million Series A.

Since being founded, the company has raised $2 billion, per Crunchbase data.

Artificial intelligence-powered coding has become a hit with investors as the use case seems to have taken off inside large enterprises as a way to save developers’ time.

It seems to have also spurred M&A interest. In May, OpenAI said it would acquire AI-assisted coding tool Windsurf — previously called Codeium — for about $3 billion. The deal is believed to be the generative AI giant’s biggest acquisition to date, per Crunchbase.

OpenAI reportedly tried to buy Anysphere before turning its attention to Windsurf.

Whether it’s coding, model design or security, big money continues to pour into AI.

Per Crunchbase’s global funding report, AI was the leading sector for venture funding in the first quarter, with $59.6 billion invested. The first quarter also marked the strongest quarter for AI funding ever, with an astonishing 53% of global funding going to the AI sector alone.

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Illustration: Dom Guzman