Cursor Raises $100M Series B at $1.25B Valuation as AI Code Editor Wars Heat Up

Cursor, the AI-first code editor, raised a $100M Series B led by Andreessen Horowitz at $1.25B valuation. The company reports 1M monthly active users (up from 200K in 6 months) and $30M ARR, driven almost entirely by word-of-mouth from developers experiencing productivity gains. Unlike AI code completion add-ons, Cursor is built from the ground up with AI as first-class collaborator: full codebase context, multi-file editing, and natural language-to-code with understanding of existing patterns. Enterprise features including team collaboration and compliance controls launching later in 2025.