As Cursor, the popular AI coding company, prepares for an expected acquisition by Elon Musk’s SpaceX, the startup has hit another financial milestone: It topped $4 billion in annualized revenue in the last week, according to a person familiar with the matter.

The figure suggests Cursor’s business is still fast-growing, despite fearsome competition from Anthropic and OpenAI, which have poured major investment into their coding models. The new revenue is up from $3 billion in late April, and $2 billion in February.

Though Cursor started as an individual developer tool, the company is now focused on selling into the enterprise. Of its total run rate, 75% of that comes from other businesses, the company told Forbes in late May. Its enterprise business grew three times in the first quarter, over the fourth quarter 2025, it said.

The new revenue growth was driven partly by the launch of Cursor’s agent tool Cloud Agents in February, the person familiar said. The spike in revenue could also point to additional demand as the company ties itself to Musk.

The milestone comes as Cursor increasingly plays defense against its big-name rivals. Founded in 2022 by four friends who met at MIT, the startup was an early frontrunner and darling in the nascent field of AI code. But big advancements from Anthropic and its Claude Code tool have put Cursor and other coding startups in the hot seat. After Anthropic released its Opus 4.5 model late last year, seen industrywide as a game-changer in AI coding, Cursor internally shifted into a “war time” posture as it sought to protect its territory in the market.

Since then, Cursor has entered into a $60 billion deal with SpaceX to train its models on its Colossus supercomputer, with the expectation that SpaceX acquires it shortly after its historic IPO, currently expected later this week. No products will be shut down as a result of the acquisition, Tido Carriero, Cursor’s vice president of engineering, who leads Cursor’s 200-person engineering and product team, told Forbes last month. Instead, he noted, Cursor’s models will get a boost because of the infrastructure upgrade. “We've just been compute constrained for a long time, so getting out of that world is very exciting,” he said at the time.

Meanwhile, AI coding tools like Cursor and its ilk have profoundly changed the software engineering industry, according to a report from Cursor released last month. The industry’s top 1% of developers using AI coding tools now write 46 times more AI-generated lines of code per day than the median active user.

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