Leading AI startups are growing so fast that they’re forcing investors to rethink how they evaluate firms in the sector, venture capitalists say.

San Francisco-based Anysphere’s AI coding assistant Cursor reportedly hit US$100 million in annual recurring revenue in January, just 14 months after launch. The firm’s revenue run rate had topped US$500 million by June. Stockholm-based Lovable Labs, which also makes AI development tools, claimed in May to have reached US$50 million in annual recurring revenue in six months. READ MORE