AI coding startup Cursor is in talks to raise more than $2 billion in new funding at a valuation of $50 billion, Bloomberg News reported on Thursday, citing four people familiar with the matter.

Existing investors Thrive and Andreessen Horowitz are expected to lead the round. Battery Ventures may also take part, and Nvidia is expected to invest, the report said.

The round is already oversubscribed, but final terms have not been set, Bloomberg News said.

The $50 billion valuation Cursor is targeting in this round is nearly double the $29.3 billion valuation it had when it raised funding 6 months ago.

According to TechCrunch, Cursor's revenue is growing rapidly despite intense competition with Anthropic Claude Code and OpenAI Codex. Cursor is targeting an annualised revenue run rate of more than $6 billion by the end of 2026. With an annualised revenue run rate reaching $2 billion in February, that would amount to growth of more than threefold over the next 10 months.

Profitability is also improving. Cursor posted a small gross profit after introducing its in-house Composer model in November last year and using cheaper external models such as China's Kimi. Specifically, it is posting positive gross profit in its large corporate customer segment, but it is still losing money on individual developer accounts.

Cursor appears to be seeking to reduce its reliance on external models to lower risks caused by model suppliers. Anthropic Claude Code has emerged as Cursor's biggest competitor.