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

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737 points rcchen | 7 comments | 11 Jul 25 21:35 UTC | HN request time: 0.571s | source | bottom
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dalemhurley ◴[11 Jul 25 22:24 UTC] No.44537376[source]▶
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.

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woeirua ◴[11 Jul 25 23:37 UTC] No.44537910[source]▶
There is no moat. If you’re a true believer that strong agents are around the corner, then all of these add on companies will be obsolete in a few years. The first company to strong agents can trivially rebuild Cursor or Windsurf.
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1. herval ◴[12 Jul 25 01:07 UTC] No.44538414[source]▶
If you believe AGI is around the corner, doesn’t it mean it’ll replace ALL products?
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2. yieldcrv ◴[12 Jul 25 01:27 UTC] No.44538510[source]▶
So grifting for investor cash and revenue right now is the obvious play either way
3. kevindamm ◴[12 Jul 25 05:06 UTC] No.44539451[source]▶
That would be true if the product was the goal. In my experience,

  marketing > market > product
Even with AGI in hand, there will still be competition between offerings based on externalities, inertia, or battle-testedness, or authority. Maybe super-intelligence would change the calculus of that, but you'd still probably find opportunities beyond just letting your pool of agents vibe code it.
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4. herval ◴[12 Jul 25 05:43 UTC] No.44539615[source]▶
Sounds like the kind of thing Windsurf & Cursor had as their most valuable asset - mindshare and authority?
5. pjc50 ◴[12 Jul 25 06:52 UTC] No.44539920[source]▶
If you believe AGI is round the corner (I don't), then you face the dilemma of investing in a company that will be the one profitable survivor in a disintegrating world.
6. charcircuit ◴[12 Jul 25 07:36 UTC] No.44540096[source]▶
This would only be true if it was cheap to run and would return results quickly. If AGI only has compute to serve 1 customer per hour then their is an upper bound of market share it can take from other products.
7. TrackerFF ◴[12 Jul 25 12:24 UTC] No.44541572[source]▶
If AGI is around the corner, I don't believe one single company will "own" that tech. It will be like it is today, where you have multiple models competing.

And after that, AGI will be open source.

In the end, ownership of data and compute will be the things that define the victors.