AI coding startup Cursor is in talks to raise a massive $2 billion funding round at a valuation exceeding $50 billion, according to a source familiar with the matter who spoke to CNBC.
Andreessen Horowitz is slated to co-lead the new investment, with Nvidia and Thrive Capital also expected to participate, said the source, who wasn't authorized to speak publicly. All three firms have previously backed the startup.
Bloomberg News first reported that Cursor was raising capital.
The AI coding gold rush
The potential round highlights the venture capital industry's continued enthusiasm for startups building AI coding agents—tools that can handle a range of software development tasks. While Cursor was an early player in this space, giants like Google, Anthropic, and OpenAI have since launched similar offerings.
Cursor announced in November that it closed a $2.3 billion funding round at a $29.3 billion post-money valuation. That financing followed a $900 million round in June.
Among Cursor's current investors are Accel, DST Global, Coatue, and Google, according to a corporate blog post.
What Cursor is building
The startup released several updates in February aimed at helping software developers, including giving its AI agents the ability to test their own coding changes and record their actions via videos, logs, and screenshots.
Cursor didn't immediately reply to a request for comment.
This funding frenzy isn't isolated. Other AI labs are also commanding staggering valuations, with Anthropic reportedly fielding offers that would value it at $800 billion or more, and Chinese startup DeepSeek eyeing a $3 billion round at a $100 billion valuation.