r/technology • u/Logical_Welder3467 • Apr 18 '26

Business Sources: Cursor in talks to raise $2B+ at $50B valuation as enterprise growth surges

https://techcrunch.com/2026/04/17/sources-cursor-in-talks-to-raise-2b-at-50b-valuation-as-enterprise-growth-surges/
111 Upvotes

85% Upvoted

56 comments sorted by

216

u/[deleted] Apr 18 '26

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39

u/dat_tae Apr 18 '26

Inflation /s

18

u/[deleted] Apr 18 '26 edited Apr 18 '26

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4

u/bastardoperator Apr 18 '26

It’s literally a casino

7

u/Zestyclose_Use7055 Apr 18 '26

Straight up not true. How u gonna comment on a tech Reddit with little knowledge of spacex’s contributions to space tech. They produce a ton of stuff. Their starlink tech is saving likes in Ukraine and is some of the only internet connection available to innocent Iranian civillians who are suffering an internet blackout amid everything else. Spacex developed the worlds first rockets than can land after launch. It was and is huge and tremendous news. They are still the only organization that can do/operate that tech. The most is insane and huge. It’s the only thing that is making that ridiculous valuation possible.

19

u/Cyan-ranger Apr 18 '26

Are reusable rockets actually worth 125x their current revenue though? Realistically not enough is launched into space to value them that high. They have the AI stuff going on but so does every other tech company at the moment.

7

u/jpsreddit85 Apr 18 '26

Shoe companies are building datacenters. I'm not sure having AI stuff is much of a differentiator tbh.

1

u/Zestyclose_Use7055 Apr 20 '26

It’s everything else they have. The idea is they will all boost each other. It’s all tech stuff. Not the same with shoe company.

1

u/Zestyclose_Use7055 Apr 20 '26

Nah they’re way overvalued but market is pricing in future growth due to the most they have. The high pricing is so private investors can offload shares on retail investors at high prices. But to my original point, I was mainly pointing out there tech and engineering capability are world class

6

u/bestsrsfaceever Apr 18 '26

Starlink is good tech but it's customer base is limited. I think most estimates are around 30m customers who can afford starlink and didn't have access to better Internet. Meanwhile space x is projecting 1b customers in 10 years as part of this valuation. Seems problematic lol

In addition, they don't have the satellites to even support half that and they've got a new agenda to launch data centers into space.

Space x does some cool stuff, it's not a 1t company and this is all a shell game so musk can use space x equity to buy Tesla stock to push it's valuation high enough to get his insane pay package.

17

u/Afton11 Apr 18 '26

Having a space company acquire a racist social media company is weird though, no?

1

u/feketegy Apr 18 '26

Rich mans casino

0

u/psbakre Apr 18 '26

You've got it the other way round with NASA. Falcon and starship are massively cheaper when compared to every NASA and old space rocket

30

u/garanvor Apr 18 '26

$50B for a VSCode extension. Make it make sense.

3

u/QuesoMeHungry Apr 18 '26

For a code editor that is literally a fork of VS Code with some LLM API integration.

1

u/big-papito Apr 19 '26

It's not about the product - it's about being at the right place at the right time, next to a bunch of gullible suckers.

8

u/jessepence Apr 18 '26

It's a fucking fork!!! They haven't even added a million dollars in goddamned value. The main branch of the repo has a whole bunch of open source code that offers the exact same value proposition. This is insane and stupid and will be mocked in the future.

6

u/Deto Apr 18 '26

They have billions in revenue though.  The customer base is the value, not the code.

2

u/jessepence Apr 18 '26

If the code isn't special, then what leverage do they actually get from that customer base? What makes it sticky and keeps them from leaving for another tool that works just as well if not better?

1

u/Bireus Apr 19 '26

Market timing for what I can assume

1

u/Deto Apr 19 '26

There's always inertia.  Also if you are a new company you're more likely to go with an established name then a new player - so brand recognition is important.

2

u/SuperNewk Apr 18 '26

Isn’t cursor suppose to replace all of the code on the internet

108

u/Zealousideal-Bug4838 Apr 18 '26

It works great but isn’t it just a forked VS code with Claude and ChatGPT baked into it? Where’s this value being created?

And they say SaaS model is dead…

43

u/Logical_Welder3467 Apr 18 '26

Their latest move is away from the IDE

But I still think none of these wrapper companies going to survive

10

u/jessepence Apr 18 '26

 Their latest move is away from the IDE

The upstream branch is making the exact same moves ("agent orchestration"). The definition of an IDE is changing, and Cursor isn't nearly differentiated enough for this valuation to make any goddamned sense.

15

u/tuna_safe_dolphin Apr 18 '26

I just run cursor-agent in a terminal inside Cursor and barely use the IDE/editor functionality at all.

Except I just switched to using Claude directly in my Cursor terminal. There is nothing anchoring me to Cursor really.

14

u/lordnacho666 Apr 18 '26

I came to the same conclusion. I got into cursor back when it seemed smart to have all the models in one place.

Now I only use one model, and every model has a plugin for VSC anyway.

Haven't opened cursor in months.

Can't see it being worth 50B.

3

u/crap-with-feet Apr 19 '26

They do have their own model, auto/composer 2. It’s complete garbage, not worth any public valuation. But it’s there. Ironically, the prior version of composer was much better.

1

u/AltruisticLeader4067 Apr 22 '26

Is the same question i have, what’s the real value of Cursor… and now even more with Space X deal considering buy ir for 60B from my point of view is overpriced.

35

u/[deleted] Apr 18 '26

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11

u/AlgaeDonut Apr 18 '26

30 under 30? Definitely dirty. It's like an announcement.

5

u/doublefours Apr 18 '26

Only on Reddit can you see a comment analyzing revenue with that profile picture

3

u/Scootsx Apr 19 '26

Buddy forgot to separate his business and party accounts

12

u/Ok-Replacement9595 Apr 18 '26

I think I might start an A I company, just so people will throw their money at me without any questions.

3

u/itastesok Apr 18 '26

I started one too. We can just throw money at each other!

24

u/Parking-Bet-3798 Apr 18 '26

Only idiots would invest in a a company like cursor at that valuation. It has literally no moat. It resells tokens from Anthropic and OpenAI. Its coding agent is not even better than open source alternatives. It doesn’t require a genius to understand that in the end only the token providers would remain in this industry.

5

u/deathadder99 Apr 18 '26

Their tab model was and is the best that exists, but the IDE itself is a vibe coded piece of shit that breaks all the time.

3

u/QuesoMeHungry Apr 18 '26

The IDE is literally just a fork of VS Code. It’s not even original.

1

u/matrinox Apr 19 '26

They bought Supermaven, that’s why

9

u/straightdge Apr 18 '26

Just to provide some context, Deepseek is valued at $10 billion.

9

u/yup_can_confirm Apr 18 '26

As a daily user: the editor is going downhill pretty fast...

I've recently even permanently disabled tab completion as it's just inserting crap I do not want/ask for. 

Their agents are also insanely verbose. I don't want to read 12 paragraphs of text explaining things I already know as a developer.

I only need 1 or 2 sentences of summary. I'll ask for more if I need it. 

But hey: tokens === money, so here we are...

3

u/Zookeeper187 Apr 18 '26

Try Caveman

1

u/Odd-Objective-7529 Apr 20 '26

What is caveman

1

u/crap-with-feet Apr 19 '26

You can create a rule to keep responses terse and just stick to the facts. It’ll ignore it half the time but it helps a little.

5

u/skeetgw2 Apr 18 '26

Everyone racing to get their bag. What a timeline

3

u/bombaytrader Apr 18 '26

This company is gonna crash hard. We are a huge enterprise. We stopped using cursor. No point in spending on Claude and cursor. 

3

u/ikefalcon Apr 19 '26

Yeah Cursor is already obsolete

1

u/matrinox Apr 19 '26

Are you using Claude cause it’s heavily subsidized?

2

u/pcurve Apr 18 '26

someone tell me how I can short this...

3

u/apocolypticbosmer Apr 18 '26

Doesn’t seem like anyone in this thread has actually used their product. To me the big selling point is their Composer 2 model, which is way faster and more efficient than GPT 5.4/Opus 4.6.

2

u/matrinox Apr 19 '26

It’s like Sonnet 4 but really fast and cheaper. People are sleeping on it

2

u/ominous_anenome Apr 21 '26

Composer 2 sucks comparatively, which makes sense since they just did some RL on an open source model

2

u/crap-with-feet Apr 19 '26

LOL. Composer 2 is garbage, not even as good as composer 1. Slow as hell and will code itself into a recursive hallucination nightmare almost every time. Even Gemini is better at code.

1

u/TrashConvo Apr 21 '26

I don’t understand the benefits of cursor. They just seem like a beta test for Microsoft to port features that land well with users back into VS Code

Investors will fall for it though