Aside of how this looks like an AI-generated PR puff piece, it comes waaay too late after the Windsurf deal busted (OpenAI refusing to buy them after all) and Google cherry-picked the employees they wanted without wanting to buy the company, the artificial ARR-blown valuation disappearing in thin air and investors losing pretty much everything.

The thing is: those "$100M+" of negative-margin ARR don't mean anything positive for Cursor, just like it didn't for Windsurf; quite to the contrary, it's just a measure of capital bleed with an unsustainable model in a negative margin death spiral: the more of that artificial ARR they make, the closer they get to bust.

For a description of the problem, see https://ethanding.substack.com/p/windsurf-gets-margin-called which was discussed here: https://news.ycombinator.com/item?id=44843801

To be honest I have never used Cursor nor do I know their pricing, but isn't revenue kind of a stupid metric if you're just a frontend for a paid API? Like wouldn't almost all of this revenue just go through them towards OpenAI or Anthropic?

This post is just ChatGPT slop

Cool, cool, now let's see their profits on that annualized (not annual!) recurring revenue.

I'll grab the popcorn in the meantime.

Isn't the playbook with a $120M+ annual LLM bill?