OpenAI’s Windsurf deal is off, and Windsurf’s CEO is going to Google

Cursor (and Garry Tan’s X post) has shown us that the VC money is propping up these companies astounding growth, the only way for them to become profitable is to increase the cost per a request, which means they need to innovate like crazy.

The moat is paper thin.

GitHub has open sourced copilot.

The open source community is working hard on their own projects.

No doubt Cursor is moving fast to create amazing innovations, but if the competition only focuses on thin wrappers they are not worth the billion dollar valuations.

I love watching this space as it is moving extremely fast.

Cursor just committed mass consumer fraud at worst, and at best pissed off all their best customers. I feel really sorry for those who invested at a 9bb valuation.