AI startup valuations are rising rapidly as investors pour more money into the field. Two glaring examples: OpenAI (PC:OPAIQ) reached a $500 billion valuation in October, up from $300 billion seven months earlier. Cursor also drew new interest when it raised $2.3 billion in mid-November at a $29.3 billion value after a $10 billion value in June.
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Fast Growth Across the Sector
Across the space, more AI firms are also raising new sums at higher values. Anthropic (PC:ANTPQ) raised its valuation to $183 billion in September following a $13 billion round. The company had a market value of $61.5 billion in March. Harvey AI, a startup that builds domain-specific AI products for the legal and broader professional services industries, raised three rounds in 2025 and moved from a $3 billion value in February to an $8 billion value in October. A study by Fortune noted that more than a dozen AI firms raised two or more rounds this year, with clear jumps in valuation.
Next, many investors point to fast growth in sales as one driver. AI firms now reach $100 million in yearly sales in one to two years. That path is much faster than past software paths. Cursor (PC:CURSO) said it has exceeded $1 billion in annual sales since its launch in 2023. Harvey AI reached $100 million in yearly sales in three years. Lovable, an AI-powered platform that enables users to create full-stack websites, said it reached $17 million in annual sales three months after launch. In the same period, Anthropic grew its yearly run rate from nearly $1 billion at the start of 2025 to more than $5 billion by August.
A Sharp Rise with New Risks
Even with strong sales, investors note some clear risks. For instance, some firms now face high spending rates as they try to grow fast. In addition, new rounds in short gaps can lead to complex firm structures that may limit future deal plans. Recent market swings also add strain as investors look for proof that long-term gains can match these new values.
As a result, some investors warn that not all firms will reach the sales needed to hold their new values. Tom Biegala from Bison Ventures said some firms may see losses if sales growth slows. In turn, more money is now going to a small set of well-known AI firms. Smaller firms now find it hard to raise funds as investors seek to back firms with clear evidence of strong use and stable sales.