Cursor Seeks $2B Raise at $50B Valuation as AI Coding Tool Eyes $6B Revenue Run Rate by 2026

AI coding tool Cursor is in talks to raise $2 billion at a staggering $50 billion valuation, backed by Andreessen Horowitz and Thrive, as it targets a $6 billion annualized revenue run rate by 2026 — tripling its February figures — while newly reaching slight gross margin profitability.

• Cursor is in talks to raise at least $2 billion at a $50 billion valuation, with returning investors Andreessen Horowitz and Thrive expected to lead the round, alongside potential participation from Battery Ventures and Nvidia.
• Revenue is surging rapidly, with Cursor forecasting an annualized run rate exceeding $6 billion by end of 2026, more than tripling from the $2 billion annualized revenue it reached in February.
• After operating at negative gross margins, Cursor is now achieving slight overall gross margin profitability, driven by its proprietary Composer model and cheaper third-party models, though it remains unprofitable on individual developer accounts.