AI coding company Cursor has raised $2.3 billion in a new funding round, boosting its valuation to $29.3 billion. The startup, which aids engineers in writing code by analyzing their actions and suggesting subsequent lines, has seen its valuation soar from under $10 billion just months ago. This significant increase underscores the robust investor interest in AI technologies. Cursor also offers a chatbot for code-related inquiries, positioning itself among other AI-driven coding firms like Replit and Cognition. Despite the high costs associated with AI model development, investors remain optimistic about the potential for reduced expenses and increased customer willingness to pay for valuable AI applications.