The cursor logo on a smartphone in New Hyde Park, New York, November 20, 2025.
Gabby Jones | Bloomberg | Getty Images
A source familiar with the matter told CNBC that artificial intelligence startup Cursor is currently negotiating a $2 billion funding round at a valuation of over $50 billion, which does not include the investment.
Andreessen Horowitz will co-lead the new investment round Nvidia and Thrive Capital are also expected to participate, said the source, who was not authorized to speak publicly about the investment. These three companies have all previously backed the AI ​​coding startup.
Bloomberg News first reported that Cursor was raising capital.
The funding round underscores the venture capital industry’s enthusiasm for startups that specialize in AI programming agents that can complete a range of software development tasks for users. Although Cursor was among the first major startups to focus on AI coding agents, other companies such as Google, Anthropic and OpenAI have since launched similar tools.
Cursor announced in November that it had closed a $2.3 billion funding round at a post-money valuation of $29.3 billion. This funding comes after a $900 million investment round in June.
Cursor’s current investors include Accel, DST Global, Coatue and Google, according to a company blog post.
The startup released several updates in February designed to help software developers, including by giving AI agents the ability to test their coding changes and record their actions via videos, logs and screenshots.
Cursor did not immediately respond to a request for comment.
REGARD: Cursor CEO Michael Truell: We see success in our age of AI, not just demand
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