Cursor is reportedly in advanced talks to raise at least $2 billion in new funding, with returning investors Thrive Capitaland Andreessen Horowitz expected to lead the round at a $50 billion valuation prior to the raise. Additional participation may include Battery Ventures and Nvidia.
The company’s valuation would nearly double from its previous $29.3 billion level, reflecting rapid growth in AI-assisted coding demand. Cursor is forecasting an annualised revenue run rate exceeding $6 billion by the end of 2026, building on earlier momentum that saw it reach $2 billion in annualised revenue.
Founded by Michael Truell and co-founders Sualeh Asif, Arvid Lunnemark, and Aman Sanger, the company has improved margins by introducing its proprietary Composer model and reducing reliance on external AI providers.
