Nov 13 (Reuters) - Code-generation startup Cursor nearly

tripled its valuation to $29.3 billion in five months after

raising $2.3 billion in its latest funding round, as artificial

intelligence companies continue to attract investor attention.

The Series D funding round was led by new investor Coatue,

an investment management firm, and existing investor Accel,

Cursor said in a blog post on Thursday. Fresh investors Nvidia ( NVDA )

and Alphabet's Google also participated in

the round.

AI firms have dominated private funding markets this year,

with global venture funding in the third quarter increasing 38%

year-over-year to $97 billion, about half of which went to AI

companies, according to data from Crunchbase.

A surge in investor appetite for AI-linked firms also helped

drive Wall Street's benchmark indexes to record highs this year.

The San Francisco-based company raised $900 million in June

at a $9.9 billion valuation, attracting backing from investors,

including Thrive Capital, Andreessen Horowitz and Accel.

The company has crossed $1 billion in annualized revenue,

with sales-led revenue increasing 100-fold since the beginning

of 2025, Cursor said in a mailed statement to Reuters.

Cursor, which develops tools to autonomously generate and

complete code, said the latest funding round will be used to

invest in its research efforts.

Code-generation startups are attracting sky-high valuations

as businesses explore artificial intelligence-based solutions to

enhance or replace traditional software development roles.

However, investor concerns that valuations of AI companies

may have outpaced fundamentals intensified after SoftBank Group

offloaded its $5.8 billion stake in Nvidia ( NVDA ) earlier in the week.