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AI coding startup Cursor is nearing new funding in which the four-year-old company would raise at least $2 billion in fresh capital, according to four sources familiar with the matter. Returning investors Thrive and Andreessen Horowitz are expected to lead the financing at a $50 billion valuation, prior to the new capital injection, the people said.<\/p>\n
Battery Ventures, a new investor, may also participate in the financing, according to two sources. Strategic investor Nvidia is also expected to write a check, one person said.<\/p>\n
Although the round is already oversubscribed, the deal terms are not final and may still change.<\/p>\n
The financing, if completed, would nearly double Cursor\u2019s previous $29.3 billion post-money valuation, assigned to the company during its last fundraise six months ago.<\/p>\n
Despite fierce competition from other AI-coding offerings, such as Anthropic\u2019s Claude Code and OpenAI\u2019s revamped Codex, Cursor\u2019s revenue continues to climb rapidly.<\/p>\n
Cursor forecasts ending 2026 with an annualized revenue run rate of more than $6 billion, two people said. This trajectory implies the company expects to at least triple its annualized revenue over the next 10 months. In February, Cursor reached $2 billion in annualized revenue, calculated by projecting its most recent monthly sales over a year, Bloomberg reported.<\/p>\n
Like many AI-coding startups reliant on third-party models, Cursor operated at\u00a0negative gross margins\u00a0until recently, meaning<\/span> it cost more to run the product than the startup could charge for it. The introduction of a proprietary Composer model last November, along with the ability to call on less expensive models like China\u2019s Kimi, has helped the company achieve slight gross margin profitability, the people said.<\/p>\n Techcrunch event<\/p>\n \n\t\t\t\t\t\t\t\t\tSan Francisco, CA<\/span> On a more granular level, the company has reached positive gross margins on its sales to large enterprises, but continues to lose money on individual developer accounts, according to one person.<\/p>\n By relying less on outside providers, Cursor is trying to avoid being replaced by its own suppliers, most notably Anthropic, whose Claude Code has emerged as the startup\u2019s main rival.<\/p>\n Cursor and Battery Ventures declined comment. Thrive, a16z, and Nvidia didn\u2019t respond to request for comment. <\/p>\n Cursor, previously known as Anysphere, was co-founded in 2022 by Michael Truell, Sualeh Asif, Arvid Lunnemark, and Aman Sanger while they were students at MIT.<\/p>\n<\/div>\n
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\n\t\t\t\t\t\t\t\t\t\t\t\t\tOctober 13-15, 2026<\/span>\n\t\t\t\t\t\t\t<\/p>\n<\/p><\/div>\n<\/p><\/div>\n<\/div>\n