SAN FRANCISCO, Feb. 11 — A code editor that did not exist five years ago now has a seven-figure paying user base. Anysphere, the four-year-old company that makes Cursor, said Tuesday that paid subscriptions have passed 1 million and that the business is running at more than $480 million in annualized revenue.
The company posted the figure in a short blog entry and confirmed it when Consumer Tech Wire asked. It did not say how many people use Cursor each month without paying. Even on the paid count alone, few software companies have reached a million subscribers this fast — and most of those users came from Visual Studio Code, the free Microsoft editor that Cursor itself is built on.
The numbers Anysphere disclosed
| Metric | Figure |
|---|---|
| Paid subscribers | More than 1 million |
| Annualized revenue run rate | Above $480 million |
| Share of payers on Business | About 19 percent |
| Enterprise customers | More than 600 |
| Pro / Business list price | $20 / $40 per month (Enterprise priced by seat) |
| Last funding | $900 million Series C, October 2025, at a reported $9.6 billion valuation |
What a paid seat buys
Cursor began as a fork of the open-source Visual Studio Code and puts large-language-model agents inside the editing surface rather than in a side panel. Its signature feature, Composer, takes an instruction written in plain English, plans the change, carries out edits across several files, runs the tests and hands the developer a diff to approve or reject.
That workflow is the core of Anysphere’s pitch, and chief executive Aravind Patel-Wong described the moment as a migration rather than a single product win.
“We are at the early end of a multi-year editor migration,” Patel-Wong said in an interview. “What is unusual about this cycle is not that a new editor has won developer share — that has happened roughly every decade since the 1980s — but the speed. We did not expect to be at this number this quickly.”
The incumbents’ answer
Microsoft has not been standing still. GitHub Copilot is still the larger AI-coding product — GitHub said in November that it had more than 5 million paid subscribers — but it is sold as an add-on to the editor a developer already uses, not as a new editor. JetBrains, the second-biggest commercial editor company by revenue, released its AI Assistant in 2024 and followed with Junie, an autonomous agent, in 2025.
So the contest is less about which assistant is smarter than about where it lives: inside a familiar editor, or as the editor. Karina Falconetti-Brand, an analyst at the developer-tools research firm Redpoint, put it this way:
“The interesting question is not whether Cursor or Copilot wins on subscribers — both will keep growing — but whether the editor itself remains the center of gravity for the developer,” she said. “What Anysphere has built is the most coherent answer to date to that question on the agent side. Microsoft has more distribution. The next twelve months will tell.”
Price pressure in the segment picked up later in the year; our June report on the AI coding price war tracks how rivals responded.
Where the money goes
Thrive Capital led the October 2025 Series C, with Andreessen Horowitz and Nvidia’s venture arm also investing. Patel-Wong said Cursor has made money on a contribution-margin basis since the middle of 2025, but that Anysphere is spending heavily on two things: inference infrastructure, and a research group training coding models built specifically for Cursor.
The company is hiring in model research, infrastructure and product engineering, and plans its first developer conference in San Francisco in June. The next product step arrived in May, when Cursor shipped background agents with multi-repo awareness. For the model side of the same race, see our report on Claude Opus 4’s coding benchmark claims.
Ronan Whitfield-Asari reports on AI developer tools for Consumer Tech Wire. More from the beat is on the AI Tools desk.