Cursor is closing a heavily oversubscribed funding round led by Thrive and Andreessen Horowitz at a $50B pre-money valuation.

The AI coding startup hit $2B ARR in February 2025 and forecasts exceeding $6B ARR by end of 2026.

The company has reached positive gross margins on its sales to large enterprises, but continues to lose money on individual developer accounts.

By relying less on outside 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 rival.