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. 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. Like many AI-coding startups reliant on third-party models, Cursor operated at negative gross margins until recently, meaning 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...
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