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<\/a>, 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<\/a>.<\/p>\n Like many AI-coding startups reliant on third-party models, Cursor operated at\u00a0negative gross margins<\/a>\u00a0until recently, meaning it cost more to run the product than the startup could charge for it. The introduction of a proprietary Composer model<\/a> 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 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","protected":false},"excerpt":{"rendered":"AI coding startup Cursor is nearing new funding in which the four-year-old company would raise at least $2…\n","protected":false},"author":2,"featured_media":384947,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[365,24787,16545,363,364,53110,1017,111,139,69,145,61885],"class_list":{"0":"post-384946","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-artificial-intelligence","8":"tag-ai","9":"tag-ai-coding","10":"tag-andreessen-horowitz","11":"tag-artificial-intelligence","12":"tag-artificialintelligence","13":"tag-cursor","14":"tag-exclusive","15":"tag-new-zealand","16":"tag-newzealand","17":"tag-nz","18":"tag-technology","19":"tag-thrive"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/384946","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=384946"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/384946\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/384947"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=384946"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=384946"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=384946"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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\n\t\t\t\t\t\t\t\t\t\t\t\t\tOctober 13-15, 2026\n\t\t\t\t\t\t\t<\/p>\n