AI coding startup Cursor is close to securing new funding, aiming to raise at least $2 billion. Thrive and Andreessen Horowitz are expected to lead the round at a $50 billion valuation. Battery Ventures and strategic investor Nvidia may also join the financing. The deal is oversubscribed, but terms are not final. If successful, this round will nearly double Cursor’s previous $29.3 billion valuation. Despite competition from Anthropic’s Claude Code and OpenAI’s Codex, Cursor’s revenue is growing rapidly. The company projects an annualized revenue run rate over $6 billion by the end of 2026, expecting to triple its current revenue. Bloomberg reported Cursor reached $2 billion in annualized revenue in February. Cursor had negative gross margins but achieved slight profitability with its proprietary Composer model and by using less expensive models like Kimi. The company reaches positive gross margins with enterprise sales but not with individual accounts. By reducing dependence on external models, Cursor aims to avoid being supplanted by suppliers like Anthropic. Cursor and Battery Ventures declined to comment, while others did not respond. Cursor, formerly Anysphere, was co-founded in 2022 at MIT by Michael Truell, Sualeh Asif, Arvid Lunnemark, and Aman Sanger.
Sources: Cursor Negotiating $2B+ Funding at $50B Valuation Amid Rapid Enterprise Growth
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