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 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 per cent 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 earlier in the week.