AI startup Cursor pursues $2bn funding with $50 billion+ valuation
Cursor's current investors include Accel, DST Global, Coatue, and Google
The artificial intelligence (AI) company Cursor is currently negotiating a $2 billion funding round, aiming for a valuation exceeding $50 billion that excludes the investment, as per a source aware of the discussions shared with CNBC.
Andreessen Horowitz is anticipated to co-lead this new funding stage, with Nvidia and Thrive Capital expected to join in, mentioned the source, who wasn't permitted to discuss the investment openly.
These three firms have previously invested in the AI coding startup.
Bloomberg News initially reported on Cursor's efforts to secure funding.
The financing round highlights the venture capital sector's keen interest in startups focusing on AI coding agents capable of handling various software development activities for users.
Despite Cursor being one of the pioneering startups to concentrate on AI coding agents, other companies like Google, Anthropic, and OpenAI have since introduced similar tools.
In November, Cursor revealed that it had concluded a $2.3 billion funding round achieving a $29.3 billion post-investment valuation. This financing followed a $900 million funding round in June.
Cursor's current investors include Accel, DST Global, Coatue, and Google, based on a corporate blog post.
In February, the startup launched several updates aimed at assisting software developers, such as enabling AI agents to test their code modifications and document their actions through videos, logs, and screenshots.