Sources: Index is in talks to raise $2 billion at a $50 billion valuation as enterprise growth picks up

AI coding startup Cursor is close to new funding in which the four-year-old company will raise at least $2 billion in new capital, according to four sources familiar with the matter. Returning investors Thrive and Andreessen Horowitz are expected to lead the financing at a valuation of $50 billion, before the new capital infusion, the sources said.

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 of the people said.

Although the round is already oversubscribed, the terms of the deal are not final and may change.

The funding, if completed, will nearly double the index’s previous funding $29.3 billion post-money valuationwas hired for the company during its last fundraising campaign six months ago.

Despite fierce competition from other AI coding offerings, such as Anthropic’s Claude Code and OpenAI’s revamped Codex, Cursor’s revenues continue to rise rapidly.

Cursor expects to end 2026 with an annual revenue run rate of more than $6 billion, two people said. This trajectory indicates that the company expects to at least triple its annual revenue over the next 10 months. In February, Cursor reached $2 billion in annual revenue, which was calculated by projecting its most recent monthly sales over the course of a year. Bloomberg reported.

Like many AI coding startups that rely on external models, Cursor has worked in Negative gross margins Until recently, I mean It costs more to run a product than a startup can charge. Introduction to ownership Composer model Last November, coupled with the ability to recall less expensive models like China’s Kimi, helped the company achieve slight overall profitability, the people said.

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 of the people.

By relying less on third-party providers, Cursor is trying to avoid being replaced by its own suppliers, most notably Anthropic, whose Claude Code has emerged as the startup’s main competitor.

Cursor and Battery Ventures declined to comment. Thrive, a16z, and Nvidia did not respond to a request for comment.

Cursor, formerly known as Anysphere, was founded in 2022 by Michael Troll, Sawala Asif, Arvid Lonemark, and Aman Sanger while they were students at MIT.