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

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757 points rcchen | 1 comments | 11 Jul 25 21:35 UTC | HN request time: 0.278s | source
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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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TechDebtDevin ◴[11 Jul 25 23:51 UTC] No.44537998[source]▶
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.
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aeve890 ◴[12 Jul 25 00:16 UTC] No.44538127[source]▶
>Cursor just committed mass consumer fraud at worst, and at best pissed off all their best customers.

What happened?

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wadefletch ◴[12 Jul 25 00:36 UTC] No.44538243[source]▶
flip-flopping on pricing has led users to feel nickel-and-dimed

i like cursor fine, but check out the forum/subreddit to see people talking like addicts, pissed their fix is getting more expensive

i think this aggressive reaction is more pronounced for non-programmers who are making things for the first time. they tasted a new power and they don't want it taken away.

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hobofan ◴[12 Jul 25 06:34 UTC] No.44539842[source]▶
What surprises me is just how much they've missed the mark.

I'm not an extreme user of Cursor. It has become an essential part of my workflow, but I also probably on the lower/medium section of users. I know that a lot of my friends were spending $XXX amounts/month on extra usage with them, while I've never gone beyond 50% included premium credits usage.

After their changes I'm getting hit with throttling multiple times a day, which likely means that the same thing happens to almost every Cursor user. So that means one or more of:

- They are jacking up the prices, to squeeze out more profit, so it looks good in the VC game

- They had to jack up the prices, so that they aren't running at a loss anymore (that would be a bad indicator regarding profitability for the whole field)

- They are really incompetent about simulating/estimating the impact of their pricing decisions, which also isn't a good future indicator for their customers

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1. raesene9 ◴[12 Jul 25 06:45 UTC] No.44539893[source]▶
My guess is that it's your second scenario there (avoid running at a loss). In the start-up game scale/growth is the most important thing and profits really aren't that important. you want to show to later stage VCs that your idea has traction and there's a large addressable market.

Whilst profits aren't important you also can't burn all your current capital, so if the burn rate gets too high you have to put up prices, which seems likely to be what Cursor is doing.