The AI coding firm Cursor is approaching a new funding round in which the four-year-old organization aims to secure at least $2 billion in additional capital, as reported by four individuals familiar with the situation. Returning investors Thrive and Andreessen Horowitz are anticipated to spearhead the funding at a valuation of $50 billion, before the influx of new capital, according to the sources.

Battery Ventures, a new investor, may also take part in the funding, as noted by two sources. Strategic investor Nvidia is likewise expected to contribute financially, one individual stated.

Although the funding round is already oversubscribed, the terms of the deal are not finalized and could still be adjusted.

If the funding goes through, it would nearly double Cursor’s previous $29.3 billion post-money valuation that was assigned to the company during its last fundraising effort six months prior.

In spite of intense competition from other AI-coding solutions, such as Anthropic’s Claude Code and OpenAI’s upgraded Codex, Cursor’s revenue continues to rise swiftly.

Cursor predicts concluding 2026 with an annualized revenue run rate exceeding $6 billion, according to two individuals. This growth trajectory suggests that the company expects to at least triple its annualized revenue in the coming 10 months. In February, Cursor reported reaching $2 billion in annualized revenue, calculated by extrapolating its most recent monthly sales over the course of a year, as reported by Bloomberg.

Like many AI-coding startups that depend on third-party models, Cursor experienced negative gross margins until recently, indicating that the costs of operating the product exceeded the revenues it could generate. The launch of a proprietary Composer model last November, along with access to cheaper models like China’s Kimi, has enabled the company to achieve marginal gross margin profitability, the sources noted.

On a more detailed level, the organization has achieved positive gross margins on sales to large enterprises, but continues to incur losses on accounts for individual developers, as indicated by one individual.

By reducing reliance on external providers, Cursor aims to prevent being supplanted by its own suppliers, particularly Anthropic, whose Claude Code has become the startup’s primary competitor.

Cursor and Battery Ventures opted not to comment. Thrive, a16z, and Nvidia did not respond to requests for comments.

Cursor, formerly known as Anysphere, was co-founded in 2022 by Michael Truell, Sualeh Asif, Arvid Lunnemark, and Aman Sanger while they were studying at MIT.