AI coding startup Cursor is poised to raise at least $2 billion, valuing the company at a whopping $50 billion. Thrive and Andreessen Horowitz are leading this round, with Nvidia also set to join in.

Despite stiff competition from rivals like Anthropic’s Claude Code and OpenAI’s Codex, Cursor has seen its revenue surge, forecasting an annualized run rate of over $6 billion by 2026. This represents a threefold increase within the next ten months from their February milestone of $2 billion.

The company recently introduced a proprietary Composer model to boost profitability, reducing reliance on costly third-party models like Anthropic’s Claude Code. However, Cursor still struggles with negative gross margins for individual developer accounts, focusing instead on large enterprise deals where they are already profitable.

Cursor was co-founded in 2022 by Michael Truell and his MIT classmates at Anysphere, a name that seems to have seen better days as the startup looks to navigate the competitive tech landscape.