Source: Cursor in talks to raise $2B+ at $50B valuation as business grows

AI coding startup Cursor is approaching new funding that will take the four-year-old company to at least $2 billion, according to four sources familiar with the matter. Returning investors Thrive and Andreessen Horowitz are expected to lead the fund at a cost of $50 billion, before a new capital injection, the people said.

Battery Ventures, a new investor, may participate in the financing, according to two sources. Strategic investor Nvidia is also expected to write a check, one of the people said.

Although the cycle has already been recorded, the agreements are not final and are subject to change.

The amount, when completed, can double that of the Cursor $29.3 billion after expenseswhich was given to the company during the last fund raising six months ago.

Despite fierce competition from other AI-coding projects, such as Anthropic’s Claude Code and OpenAI’s modified Codex, Cursor’s revenue continues to rise rapidly.

Forecasts that end in 2026 are in excess of $6 billion a year, two people said. This means the company expects to double its annual revenue over the next 10 months. In February, Cursor reached $2 billion in annual revenue, calculated by showing its latest monthly sales for a year, Bloomberg said.

Like many AI-coding startups that rely on third-party models, Cursor works to bad levels until recently, meaning it costs more to operate than to start. Establishment of the owner Model maker Last November, as well as the ability to call on cheaper models like China’s Kimi, helped the company make a small profit, the people said.

On a larger scale, the company has reached a healthy level in its sales to large companies, but continues to lose money on driver-production accounts, according to one person.

By relying less on external sponsors, Cursor is trying to avoid being replaced by advertisers, especially Anthropic, which Claude Code discovered as the main enemy of the founders.

Cursor and Battery Ventures declined to comment. Thrive, a16z, and Nvidia did not respond to requests for comment.

Cursor, formerly known as Anysphere, was founded in 2022 by Michael Truell, Sualeh Asif, Arvid Lunnemark, and Aman Sanger while they were students at MIT.