TechFlow News, April 18: According to TechCrunch, AI-powered coding startup Cursor is nearing completion of a new funding round of at least $2 billion, valuing the company at approximately $50 billion post-money—a near doubling from its $29.3 billion valuation six months ago. The round is co-led by existing investors Thrive Capital and Andreessen Horowitz, with Battery Ventures and strategic investor NVIDIA also expected to participate. The round has already been oversubscribed, though final terms have yet to be finalized.
On the performance front, Cursor projects annualized revenue exceeding $6 billion by the end of 2026—representing at least a threefold increase over its previously disclosed $2 billion annualized revenue as of February this year. Regarding profitability, the company achieved slightly positive gross margins overall following the November launch of its in-house Composer model and the integration of lower-cost third-party models (e.g., Kimi from China). Its enterprise business has achieved gross-margin profitability, while individual developer accounts remain unprofitable.
