AI coding startup Cursor is in early discussions with investors about a new funding round that could value the company at around $50B, according to a report by Bloomberg.
If completed, the round would nearly double the company’s previous valuation of $29.3B, as of November 2025. According to the report, talks are still preliminary and may not necessarily lead to a final deal.
Rivaling Anthropic
Cursor launched its AI coding assistant in 2023 to help developers write, edit, and debug code more efficiently. The tool has gained attention among programmers as demand for AI-powered coding platforms continues to grow.
According to Bloomberg, the company’s annualised revenue crossed $2B in February, highlighting the rapid adoption of such tools among software teams and developers.
The startup has already attracted funding from several well-known venture capital firms and technology companies. The investors in Cursor include Coatue, Thrive Capital, and Andreessen Horowitz, along with strategic backing from Google and NVIDIA.
The surge in funding and competition reflects a wider shift in the software industry, where AI is being integrated into development workflows. Tools designed to automate parts of the coding process are attracting both developer interest and investor capital.
