AI coding startup Cursor is reportedly close to securing at least $2 billion in fresh capital at a $50 billion pre-money valuation, nearly doubling its valuation from six months ago, as venture capital firms Thrive Capital and Andreessen Horowitz prepare to lead an already oversubscribed round.
Nvidia Among Expected Backers
According to a TechCrunch report published Friday, technology-focused investment firm Battery Ventures is expected to join the funding round as a new investor. Strategic investor Nvidia (NASDAQ:NVDA) is also expected to take part. However, the terms of the deal have not yet been finalized and could still change.
If completed, this funding would nearly double Cursor’s previous post-money valuation of $29.3 billion, which was set during its last fundraising round six months earlier. In June 2025, the California-based firm raised $900 million.
The company did not respond to Benzinga‘s request for comment outside office hours.
Revenue On Track To Triple
Despite facing fierce competition from other AI-coding offerings, Cursor’s revenue is on a rapid upward trajectory. The revenue is projected to exceed $6 billion by the end of 2026, suggesting its annualized revenue could roughly triple over the next 10 months.
The fundraising reflects surging investor appetite for AI coding tools despite intensifying competition. Salesforce (NYSE:CRM) recently launched Headless 360, a platform that directly integrates with Cursor’s developer environment, underscoring the valuation premium private AI-native tools command over traditional software companies.
Cursor’s parent company, Anysphere, was co-founded by Michael Truell, Sualeh Asif, Arvid Lunnemark and Aman Sanger while they were students at Massachusetts Institute of Technology.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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