Counterpoint, apparently cursor's revenue is in the 300-400 million range. So it's not wildly inconceivable that you'd do 40m profit (although I too am doubtful).
Unsure of what the end goal is, but I expect everything AI related to be a load-leader right now and then the goal being to figure out how to drive down costs or make even more money later.
Maybe that's what Sequioa thinks too...