AI coding startup Cursor is close to securing new funding, which could bring in at least $2 billion in fresh capital, said a TechCrunch report citing sources.
The funding is expected to be led by returning investors Thrive and Andreessen Horowitz, with the company being valued at around $50 billion pre-money. Battery Ventures, a new backer, is also expected to contribute, as is Nvidia.
Although the round is already oversubscribed, the final terms have not yet been confirmed and could still change, the report said.
If finalised, the funding would nearly double Cursor’s earlier valuation of $29.3 billion, set just six months ago during its November raise, which brought in $2.3 billion. That round saw new investors, including semiconductor giant Nvidia, Coatue Management, and Google come on board, alongside existing ones such as Accel, Andreessen Horowitz, DST Global, and Thrive Capital.
Bloomberg had previously reported that the company was considering a new fundraise.
Cursor forecasts reaching an annualised revenue run rate of more than $6 billion by the end of 2026, the TechCrunch report said. This suggests the company expects to at least triple its revenue by the year-end. In February, Cursor had already reached $2 billion in annualised revenue, based on its most recent monthly sales, as reported by Bloomberg.
This development follows the launch of Composer 2 on March 19, a new model designed to improve efficiency in software development workflows.
However, Cursor faced criticism after Chinese AI startup Moonshot AI publicly supported Composer 2 and revealed that it uses Kimi K2.5 as its base model (Kimi has been developed by Moonshot). Cursor cofounder Aman Sanger confirmed this, admitting that the company had not disclosed this detail earlier, calling it a “miss”.
The funding is expected to be led by returning investors Thrive and Andreessen Horowitz, with the company being valued at around $50 billion pre-money. Battery Ventures, a new backer, is also expected to contribute, as is Nvidia.
Although the round is already oversubscribed, the final terms have not yet been confirmed and could still change, the report said.
If finalised, the funding would nearly double Cursor’s earlier valuation of $29.3 billion, set just six months ago during its November raise, which brought in $2.3 billion. That round saw new investors, including semiconductor giant Nvidia, Coatue Management, and Google come on board, alongside existing ones such as Accel, Andreessen Horowitz, DST Global, and Thrive Capital.
Bloomberg had previously reported that the company was considering a new fundraise.
Cursor forecasts reaching an annualised revenue run rate of more than $6 billion by the end of 2026, the TechCrunch report said. This suggests the company expects to at least triple its revenue by the year-end. In February, Cursor had already reached $2 billion in annualised revenue, based on its most recent monthly sales, as reported by Bloomberg.
This development follows the launch of Composer 2 on March 19, a new model designed to improve efficiency in software development workflows.
However, Cursor faced criticism after Chinese AI startup Moonshot AI publicly supported Composer 2 and revealed that it uses Kimi K2.5 as its base model (Kimi has been developed by Moonshot). Cursor cofounder Aman Sanger confirmed this, admitting that the company had not disclosed this detail earlier, calling it a “miss”.
